Accra, Ghana – May 5, 2025 – Members of the Majority in Parliament have defended the Bank of Ghana’s (BoG) significant financial losses reported for 2025, asserting that these figures represent the unavoidable cost of deliberate policy actions undertaken to stabilize the nation’s economy. The defense comes in response to growing public debate and criticism, particularly from opposition parties and policy analysts, who have expressed concern over the central bank’s deepening negative equity.
Context of Financial Performance
The Bank of Ghana’s 2025 financial statements revealed an operating loss of GH¢15.63 billion, a substantial increase from GH¢9.49 billion in 2024. This has led to a further widening of its negative equity to GH¢93.82 billion.
These figures have drawn sharp criticism, with many interpreting them as indicators of financial distress or mismanagement within the central bank. The scale of the losses has fueled discussions about the sustainability of current monetary policies and the overall health of the nation’s financial institutions.
Majority’s Defense: Stabilizing Mandate Over Profit
Eric Afful, the Member of Parliament for Amenfi West and Chairman of Parliament’s Economic and Development Committee, addressed these concerns at a press conference in Accra. He argued that negative equity in a central bank is an accounting condition, not a sign of insolvency.
“Central banks are not profit-maximising institutions like commercial banks; they are stabilising institutions,” Afful stated. He emphasized that the Bank’s balance sheet reflects the necessary expenditure incurred to steer the economy through a period of severe distress.
The Majority contends that such financial outcomes are not uncommon for central banks actively engaged in monetary tightening. They point to global examples, including the European Central Bank, the United States Federal Reserve, and the Reserve Bank of Australia, which have also reported losses during periods of aggressive policy adjustments.
Assessing Success Through Macroeconomic Outcomes
Mr. Afful stressed that the true measure of the Bank of Ghana’s performance lies in its macroeconomic results, rather than its balance sheet alone. He highlighted several positive developments attributed to the Bank’s policies.
“On this front, the evidence is clear: inflation is down to single digits, the exchange rate has stabilised and strengthened, reserves have increased significantly, interest rates are easing, credit conditions are improving, and economic growth is picking up,” he reported. These outcomes, the Majority argues, validate the policy decisions that led to the reported financial losses.
Factors Contributing to Losses
The Majority acknowledged that several factors have contributed to the central bank’s financial position. These include the costs associated with liquidity management, foreign exchange interventions aimed at stabilizing the cedi, and various gold-related transactions.
While concerns regarding efficiency and transparency are deemed valid, the broader context of economic recovery must be considered when evaluating the Bank’s overall performance, Afful suggested. The primary mandate of the Bank of Ghana, he reiterated, is to ensure price and financial stability, a goal they believe has been advanced by recent measures.
Looking Ahead
The Majority’s press conference signals an effort to counter what they perceive as misinterpretations of the Bank’s financial health and to bolster public confidence in its ongoing strategies. As the debate continues, attention will likely focus on the long-term sustainability of these stabilization efforts and whether the current economic improvements can be maintained. Observers will be watching to see if the Bank of Ghana can navigate future economic challenges while managing its financial position effectively and transparently.
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