The Bank of Ghana (BoG) has reported a significant operating loss of GH¢15.6 billion for the fiscal year 2025, a substantial increase from the GH¢9.4 billion loss recorded in 2024. This escalation, amounting to approximately GH¢6.2 billion year-on-year, underscores the mounting costs associated with the central bank’s policy interventions. The bank’s negative equity also widened considerably, from GH¢58.62 billion in 2024 to GH¢93.82 billion in 2025.
Context of Mounting Costs
The financial statements reveal a sharp rise in the costs of monetary operations as a primary driver for the loss. Open Market Operations, a key tool for managing liquidity in the banking system, nearly doubled, surging by about 95% to GH¢16.7 billion. This aggressive liquidity management, while credited with helping to reduce inflation, came at a substantial financial cost to the central bank.
Further contributing to the increased liabilities were sterilisation liabilities to commercial banks, which jumped by 186% to GH¢93.6 billion. Money market liabilities also saw a significant increase, more than doubling to GH¢93.8 billion. These figures indicate a substantial increase in the Bank’s efforts to absorb excess liquidity from the financial system.
Impact of Exchange Rate Movements and Debt Exchange
Exchange rate fluctuations also played a critical role in the Bank’s financial performance. The cedi’s appreciation of nearly 40% against major currencies led to a revaluation loss of GH¢23.6 billion on gold, Special Drawing Rights (SDRs), and foreign securities held in Other Comprehensive Income (OCI). This was compounded by a GH¢7.99 billion reclassification of gains on gold disposal, resulting in a total OCI loss of GH¢19.9 billion for 2025, a stark contrast to the GH¢13.8 billion gain in the previous year.
The Domestic Debt Exchange Programme also impacted the Bank’s income. The programme reduced returns on government securities, leading to a sharp fall in interest income. Forgone income in 2025 is estimated to exceed GH¢12 billion, significantly affecting the Bank’s profitability.
Offsetting Factors and Reduced Government Exposure
Despite the overall loss, the Bank did report a GH¢9.57 billion gain from the disposal of a portion of its gold holdings in 2025. This gain helped to partially offset the net loss, preventing an even larger deficit.
The financial statements also indicate a reduced exposure to government borrowing. Government deposits at the central bank dropped sharply from GH¢29.9 billion to GH¢12.1 billion. Additionally, bridge facilities declined from GH¢4.55 billion to zero, reflecting the Bank’s adherence to the April 2023 zero-financing-of-budget memorandum of understanding.
Liabilities to the International Monetary Fund (IMF) also decreased from GH¢33.0 billion to GH¢21.8 billion, signaling a move towards tighter fiscal discipline and a lower reliance on central bank financing for government expenditure.
Auditors’ Assessment and Future Outlook
Auditors KPMG affirmed that despite the substantial loss, the Bank of Ghana remains operationally sound. “The Bank will continue to operate efficiently and effectively on a going concern basis and achieve its policy mandates, despite the loss recorded,” the auditors stated.
KPMG suggested that improving macroeconomic conditions could alleviate cost pressures. “As macroeconomic conditions continue to improve and inflation declines… interest rates will continue to decline and as a result cost of Open Market Operations will reduce,” they noted.
The Bank itself anticipates a reduction in the scale of losses for 2026. Key factors contributing to this outlook include tighter monetary policy, declining inflation, and improved liquidity conditions within the banking sector, all of which are expected to lessen the need for costly liquidity interventions.
Remaining Risks and Policy Objectives
However, the Bank cautioned that risks persist. These include the potential volatility of global oil prices, ongoing geopolitical tensions in the Middle East, and tighter external financing conditions. These external factors could still exert pressure on the Ghanaian economy and the Bank’s operations.
Looking forward, the Bank of Ghana remains committed to its core policy objectives. It will continue to implement measures aimed at anchoring inflation, stabilising the exchange rate, and restoring overall macroeconomic stability. The Bank also aims to rebuild its equity position to a positive state over the medium to long term.
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