Dalex Finance CEO Joe Jackson defended the Bank of Ghana’s (BoG) substantial reported losses on Monday, May 4th, asserting they are a justifiable consequence of deliberate policy measures aimed at stabilising the nation’s economy, particularly in combating inflation. The central bank’s financial position is being scrutinized amid significant losses, primarily attributed to its interventions in the market.
Context of Central Bank Interventions
The Bank of Ghana has recently recorded multi-billion cedi losses, with figures escalating from GH¢5.66 billion in 2024 to approximately GH¢9.05 billion in 2025. These financial setbacks are largely linked to the central bank’s Domestic Gold Purchase Programme (DGPP) and its open market operations. While some officials characterize these expenditures as strategic costs essential for macroeconomic stability and supporting the Ghanaian cedi, critics have voiced concerns regarding their sustainability and potential long-term implications.
Open Market Operations: A Key Cost Driver
Mr. Jackson specifically highlighted open market operations as a primary driver of the central bank’s expenses. In layman’s terms, this involves the cost incurred by the BoG to absorb excess liquidity from the financial system. This action is a critical tool for controlling inflation.
“The biggest cost was the open market operations, which, in simple English, means the cost that the central bank incurs in mopping up money in the system so that inflation comes down,” Jackson explained during an interview on the Super Morning Show.
He pointed to the significant reduction in inflation, from over 20% to below 5%, as direct evidence of the effectiveness of these costly interventions. “If there is any evidence that this makes a difference, that is the evidence. You spent money to stabilise inflation…,” he stated.
Debate Amidst Economic Pressures
Jackson’s remarks come as a public debate intensifies over the central bank’s financial performance. While the BoG maintains that the losses are calculated interventions to shield the economy from external shocks and stabilize the cedi, concerns about mismanagement persist.
This discussion unfolds against a backdrop of persistent structural weaknesses within Ghana’s economy. Mr. Jackson has previously raised alarms about foreign exchange leakages from the extractive sector, arguing that these outflows continue to pressure the cedi, even during periods of trade surplus.
His latest commentary reinforces the perspective that the Bank of Ghana’s financial losses, though substantial, may represent the necessary price for achieving short-term macroeconomic stability and curbing inflation. The central bank has consistently rejected claims of mismanagement, framing its actions as essential for economic resilience.
Future Outlook and Watchpoints
The ongoing discourse underscores the delicate balancing act faced by the Bank of Ghana. As the economy navigates global uncertainties and domestic structural challenges, attention will remain fixed on how the central bank manages its interventions. Key watchpoints will include the sustainability of these stabilization efforts, the transparency of the BoG’s financial operations, and the long-term impact on investor confidence and Ghana’s overall economic health. Observers will be keen to see if inflation remains anchored and if the cedi demonstrates sustained stability in the face of these significant expenditures.
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