The Majority side of Parliament’s Committee on Economy and Development has defended the Bank of Ghana’s 2025 financial results, describing the reported losses and negative equity position as the cost of stabilising the economy during a period of severe economic distress.
Addressing the media on the Bank’s 2025 financial performance, the Committee said the reported net loss of GH¢15.6 billion, Other Comprehensive Income (OCI) charge of GH¢19.32 billion, and negative equity position of GH¢96.3 billion should not be interpreted through the lens of commercial banking.
According to the Committee, central banking is fundamentally a public policy function, and financial outcomes often reflect the cost of interventions aimed at protecting the broader economy.
The Committee noted that between 2022 and 2024, the Bank of Ghana recorded cumulative losses of about GH¢80.85 billion during one of Ghana’s most difficult macroeconomic periods. Inflation peaked at 54.1 percent in 2022, while the cedi depreciated sharply, reaching nearly GH¢17 to the US dollar by the end of 2024. Read Also: Alliance Plans Protest Over South Africa Attacks-1
Despite the challenging conditions, the Committee said significant economic improvements were recorded in 2025 as a result of deliberate policy actions by the central bank.
Inflation, which stood at 23.8 percent at the end of 2024, reportedly declined sharply to 5.4 percent by the end of 2025 and further to 3.2 percent by March 2026. The Ghana cedi also appreciated by about 40.7 percent against the US dollar, while Gross International Reserves increased to approximately US$13 billion, covering about 5.7 months of imports.
The Committee further disclosed that economic growth strengthened significantly, with Ghana’s GDP expanding by about 6 percent in 2025 and non-oil GDP growth reaching 7.8 percent.
It explained that some of the Bank’s losses stemmed from key policy interventions, including the Domestic Debt Exchange Programme (DDEP), which reduced interest income on government securities by an estimated GH¢13 billion. http://www.ghanaweb.com
Additionally, aggressive Open Market Operations aimed at controlling inflation reportedly resulted in interest costs of about GH¢16.7 billion.
The Committee also pointed to accounting valuation losses arising from the appreciation of the cedi and charges linked to the Bank’s gold accumulation programme, which it said would deliver long term benefits for Ghana’s reserves and foreign exchange stability.
According to the Committee, the Bank’s negative equity position does not imply insolvency, stressing that central banks are not profit-driven institutions but stabilising institutions tasked with protecting economic stability.
It cited examples of major global central banks, including the European Central Bank, the United States Federal Reserve, and the Reserve Bank of Australia, which have also recorded losses during periods of aggressive monetary tightening.
The Committee maintained that the true measure of the Bank’s performance should be based on macroeconomic outcomes, including declining inflation, improved exchange rate stability, rising reserves, easing interest rates, and stronger economic growth.
Looking ahead, it expressed optimism that the financial pressures on the Bank would ease as liquidity conditions normalise, exchange rate volatility declines, and the effects of the DDEP gradually unwind.
The Committee also welcomed government’s commitment to recapitalising the Bank of Ghana under the appropriate legal framework to strengthen its balance sheet over the medium term.
It commended the Bank of Ghana for what it described as decisive policy actions during a period of extraordinary economic stress and urged the public and stakeholders to assess the Bank’s financial statements within their proper economic and policy context.
