The Bank of Ghana (BoG) has dismissed concerns over its worsening financial position, insisting that its 2025 losses and deepening negative equity do not signal institutional distress or a weakening of its core functions.
In a detailed Questions and Answers document released alongside its 2025 audited financial statements, the central bank maintained that its financial results should be interpreted within the context of its policy mandate, rather than as a measure of commercial performance.
“They do not represent a cash loss, a depletion of reserves, nor a sign of institutional distress,” the Bank stated, addressing concerns about the reported operating loss of GH¢15.63 billion and an additional GH¢19.32 billion loss recorded under Other Comprehensive Income.
The combined effect of these losses pushed the Bank’s negative equity position from GH¢61.32 billion at the beginning of 2025 to GH¢96.28 billion by year-end.
Despite this, the BoG stressed that negative equity does not carry the same implications for a central bank, as it would for a private sector institution.
“Negative equity at a central bank does not have the same significance as it does at a commercial entity… [and] does not impair the Bank’s capacity to conduct monetary policy,” the document explained.
According to the Bank, the losses recorded in 2025 primarily reflect the financial cost of aggressive monetary policy actions aimed at stabilising Ghana’s economy following a period of macroeconomic instability.
These measures included large-scale open market operations to absorb excess liquidity in the banking system, as well as interventions under the Domestic Gold Purchase Programme to strengthen foreign reserves.
The Bank noted that these policy actions yielded significant macroeconomic gains during the year.
Inflation declined sharply from 23.8 percent at the end of 2024 to 5.4 percent by December 2025, while the cedi appreciated by over 40 percent against the US dollar. Gross international reserves also rose from $9.11 billion to $13.83 billion over the same period.
The BoG explained that part of the reported losses particularly those recorded under Other Comprehensive Income were driven by exchange rate movements rather than operational inefficiencies.
Specifically, the appreciation of the cedi reduced the cedi value of foreign currency-denominated assets, resulting in accounting losses that do not reflect an actual outflow of resources.“The OCI loss is a translation effect, not a depletion of reserves,” the Bank clarified.
The central bank further emphasised that financial losses are not unusual for monetary authorities during periods of aggressive policy intervention, noting that several global central banks have recorded similar outcomes in recent years.
Looking ahead, the BoG expressed confidence that its financial position would improve as macroeconomic conditions stabilise. It indicated that the cost of open market operations the main driver of the 2025 loss is expected to decline as inflation eases and interest rates normalise.
The Bank also pointed to ongoing discussions with government on a recapitalisation plan, as well as structural reforms such as the transition to the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), which are expected to reduce the cost of reserve accumulation.
In its closing remarks, the BoG reiterated that its primary responsibility remains the delivery of price stability and financial system stability, stressing that the economic benefits of its policy actions are already evident.
“The financial cost of macroeconomic policies is recorded on the central bank’s books. The economic benefit is recorded in the country’s macroeconomic outcomes,” the Bank stated.
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