The International Monetary Fund (IMF) has defended the Bank of Ghana’s substantial financial losses, asserting that its aggressive policy actions were crucial for stabilizing the nation’s economy during a period of crisis. IMF Mission Chief Ruben Atoyan stated on Thursday that the central bank’s monetary tightening was prudent and has yielded positive outcomes recognized by the public.
Context of Central Bank Losses
These comments follow the Bank of Ghana’s reported GH¢15.6 billion loss in 2025, a significant increase from the GH¢9.49 billion loss recorded in 2024. The central bank’s audited accounts further revealed a worsening negative equity, which rose to GH¢93.82 billion from GH¢58.62 billion.
These financial setbacks are largely attributed to the high expenses associated with liquidity sterilization and stringent monetary policy measures implemented to combat inflation and stabilize the Ghanaian cedi. The significant costs incurred reflect the challenging economic environment.
Monetary Policy Costs Explained
Dr. Atoyan addressed concerns regarding the financial strain on the central bank, explaining that monetary policy operations inherently incur high costs during periods of elevated inflation and interest rates. He emphasized that the Bank of Ghana’s transparent financial statements highlight these operational costs.
“With high inflation and high interest rates, absorbing liquidity from the market is costly, and that’s what we see as reflected in the statement,” Dr. Atoyan explained during his appearance on PM Express Business Edition.
Losses as a Necessary Cost for Stability
While acknowledging that these policy actions resulted in losses for the Bank of Ghana, Dr. Atoyan maintained that they were an unavoidable and essential expenditure for achieving future macroeconomic stability. The IMF has consistently supported Ghana’s tight monetary policy stance as part of the ongoing economic recovery program.
The Fund argues that robust inflation control and exchange rate stability are paramount for rebuilding investor confidence and fostering sustainable economic growth. The aggressive measures, though costly in the short term, are viewed as investments in long-term economic health.
Broader Economic Implications
The IMF’s defense suggests a strategic approach where short-term financial costs for the central bank are acceptable if they lead to a more stable economic environment. This perspective implies that readers and the industry should anticipate continued tight monetary policy, even with its associated costs, as the nation works towards sustained recovery.
The focus remains on achieving price stability and a stronger currency, which are foundational for attracting investment and spurring economic activity. The Bank of Ghana’s actions, though financially taxing, are framed as a critical component of this broader economic strategy. Stakeholders are encouraged to look beyond the immediate financial statements and consider the long-term benefits of the stabilization efforts.
What to Watch Next
Moving forward, attention will be on whether the Bank of Ghana can successfully navigate these high operational costs while continuing to manage inflation and currency volatility. The sustainability of these measures and their impact on Ghana’s overall economic trajectory will be closely monitored by investors, policymakers, and the public alike. The effectiveness of the current monetary policy framework in achieving a lasting economic turnaround remains the key question.
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