2025 Losses Reflect Cost of Stability, Not Cash Crisis- BoG

The Bank of Ghana (BoG) says its operating loss of GH¢15.63 billion and an Other Comprehensive Income (OCI) loss of GH¢19.32 billion for 2025, do not reflect cash loss, reserve depletion, or institutional distress.

According to the Bank, the losses represent the financial cost of policy operations carried out to achieve macroeconomic stability.

It stressed that negative equity is a cumulative position carried over from prior years and deepened in 2025 but does not impair the Bank’s ability to conduct monetary policy.

Cause of Losses
The BoG attributed the GH¢15.63 billion operating loss mainly to the cost of open market operations used to absorb excess cedi liquidity, and the cost of the Domestic Gold Purchase Programme, which was aimed at building Ghana’s foreign reserves.

The GH¢19.32 billion OCI loss reflects the impact of the cedi’s appreciation on the cedi-equivalent value of the Bank’s foreign-currency reserve assets.

The BoG emphasised that while the financial cost of macroeconomic policies is recorded on the central bank’s books, the economic benefit is reflected in the country’s broader macroeconomic outcomes.

“These figures record the financial reflection of the policy operations that produced these outcomes,” the Bank stated, adding that the stability achieved in inflation and the exchange rate were direct results of those interventions.

Outlook for Improvement
The Bank said that as inflation continues to decline and the policy rate normalises, the cost of open market operations is expected to fall, leading to an improvement in its financial position.

With the cedi having adjusted significantly and market conditions stabilising, exchange rate movements are also expected to be more contained.

This should reduce the scale of revaluation effects on the Bank’s balance sheet, particularly in Other Comprehensive Income.

In addition, the transition to the Ghana National Asset and Reserve Policy (GANRAP) is expected to moderate the cost of reserve accumulation.

Story by Hajara Fuseini

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