The Centre for Economic Research and Policy Analysis (CERPA) has highlighted a significant deterioration in the Bank of Ghana’s financial health, with the central bank reporting a net loss of GH¢15.6 billion in 2025. This figure marks a substantial 66% increase from the GH¢9.4 billion loss recorded in 2024, indicating a persistent structural challenge rather than a short-term issue, according to a new policy brief from the think tank.
Context of the Growing Losses
The escalating losses at the Bank of Ghana are closely tied to the repercussions of the 2022 Domestic Debt Exchange Programme (DDEP). This initiative was a cornerstone of Ghana’s broader economic restructuring efforts aimed at alleviating the nation’s debt burden.
As part of the DDEP, financial institutions, including the central bank, were compelled to absorb considerable losses stemming from government securities. The Bank of Ghana experienced an unprecedented GH¢60.8 billion loss in 2022 directly following this debt restructuring exercise.
While losses saw a decrease in the subsequent years, falling to GH¢10.5 billion in 2023 and GH¢9.4 billion in 2024, the sharp rebound in 2025 has reignited concerns among economists and policy analysts regarding the central bank’s fiscal stability.
Key Drivers of the 2025 Net Loss
CERPA attributes the latest financial setback to a confluence of factors. These include the lingering effects of sovereign debt impairments from the DDEP, high costs associated with monetary policy operations, persistent exchange rate pressures, and quasi-fiscal interventions.
The Gold-for-Oil programme, a government initiative designed to ease fuel prices by bartering gold for oil, is specifically identified as a contributing factor to these quasi-fiscal costs.
Expert Concerns and Potential Ramifications
Economists and policy analysts warn that the continuation of such substantial losses could erode the Bank of Ghana’s balance sheet. This weakening could eventually necessitate government intervention, potentially through recapitalisation efforts.
Such a scenario risks creating a problematic interdependence between fiscal and monetary policy, potentially undermining the central bank’s operational independence, as highlighted in the CERPA policy brief.
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