Governor Johnson Asiama of the Bank of Ghana (BoG) has publicly assured that the substantial operating and Other Comprehensive Income (OCI) losses recorded in 2025 will not be repeated at the same magnitude in 2026. This statement follows the central bank’s announcement of an operating loss of GH¢15.6 billion for 2025, an increase from the GH¢9.4 billion loss in 2024.
Context: The 2025 Financial Performance
The Bank of Ghana’s financial results for 2025 revealed a significant operating loss, a stark increase from the previous year. This performance has raised concerns among the public and investors about the central bank’s financial health and its capacity to fulfill its mandate.
The losses were attributed to a confluence of three primary factors. These included revenue shortfalls stemming from the Domestic Debt Exchange Programme (DDEP), substantial revaluation losses due to a sharp appreciation of the Ghanaian Cedi, and the high cost of extensive open market operations undertaken to combat persistent inflation.
Governor Asiama Addresses the Losses
Speaking at a press briefing following the 130th Monetary Policy Committee meeting, Governor Asiama directly addressed inquiries from the Ghana News Agency regarding the central bank’s strategy to mitigate these losses.
He expressed strong confidence that the conditions driving the 2025 losses have fundamentally shifted. “From where we are currently, our operating losses will be less costly compared to last year,” Governor Asiama stated. He highlighted that the extreme appreciation of the Cedi seen in 2025, which led to significant revaluation losses, is not anticipated to recur.
“We don’t see the cedi appreciating by 41 or 42 per cent this year, so revaluation losses could actually become revaluation gains,” he elaborated, indicating a potential positive reversal on the balance sheet.
Shifting Economic Conditions
The Governor detailed how the pressures that led to the 2025 losses have materially changed. The convergence of these specific pressures is not expected to reach the same intensity or impact in the current year.
Specifically, the cost of open market operations is projected to decrease significantly in 2026. This is attributed to inflation rates falling well below the upper limit of the central bank’s medium-term target band of 8 ± 2 percent, coupled with the effects of aggressive monetary tightening measures already implemented.
Regarding the Cedi’s exchange rate, Governor Asiama pointed to the current trajectory as a positive indicator. He noted that the selling rate of the dollar on December 31, 2025, was GH₵10.4, whereas the rate had moved to GH₵11.5 by the time of his remarks. “Now, if I publish the same financials today, the picture will have changed completely,” he observed, underscoring the potential for revaluation gains instead of losses.
Stability as a ‘Necessary Cost’
Governor Asiama emphasized the importance of understanding the 2025 losses within the broader context of achievements. He described the stability gains realized in the past year as significant, characterizing them as a “necessary cost” and a “reset” that holds value beyond monetary quantification.
The paramount priority for the Bank of Ghana remains the maintenance of this hard-won stability. “What now matters most is the ability to hold the anchor going forward — to preserve the stability that was achieved at considerable cost, so that other growth outcomes can be built upon that foundation for the benefit of all Ghanaians,” he asserted.
Assurance of Viability and Future Outlook
The Governor urged the Ghanaian public not to harbor concerns about the Bank of Ghana’s viability. He reaffirmed the institution’s unwavering commitment to its price stability mandate and confidently predicted a financial turnaround in 2026.
Dr. Asiama also reiterated the Bank’s dedication to transparency and open communication. He expressed belief that an informed public would gain a comprehensive understanding of the Bank’s current standing and its future direction.
Implications and What to Watch
The central bank’s assurance suggests a period of improved financial performance ahead, contingent on the sustained stability of the Cedi and continued moderation of inflation. Investors and the public will be closely monitoring the Bank of Ghana’s upcoming financial statements to verify these projections. The ability of the BoG to maintain its price stability mandate without incurring significant operational costs will be a key indicator of Ghana’s broader economic resilience and its capacity for sustained growth. Watch for further updates on inflation trends and the Cedi’s performance against major international currencies in the coming quarters.
Leave a Reply