The Bank of Ghana (BoG) has reported a substantial operating loss of GH¢15.6 billion for the fiscal year 2025, a marked 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 escalating financial burden of the central bank’s policy interventions. The bank’s negative equity also widened considerably, surging from GH¢58.62 billion in 2024 to GH¢93.82 billion in 2025.
Mounting Costs of Monetary Operations
A primary driver behind the significant loss was the dramatic rise in the cost of monetary operations. Open Market Operations, a key tool for managing liquidity, nearly doubled, increasing by about 95% to GH¢16.7 billion. This surge reflects the intensive efforts required to absorb excess liquidity and control inflation.
Further compounding these costs were substantial increases in sterilization liabilities to commercial banks, which surged by 186% to GH¢93.6 billion. Similarly, money market liabilities also saw a sharp jump, rising by over 100% to GH¢93.8 billion. These figures indicate a significant increase in the central bank’s borrowing from the financial system to manage monetary conditions.
Impact of Exchange Rate Movements and Other Factors
Exchange rate fluctuations also played a crucial 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 within Other Comprehensive Income (OCI). This revaluation loss significantly impacted the bank’s overall equity position.
When combined with a GH¢7.99 billion reclassification of gains from the disposal of gold, the total OCI recorded a loss of GH¢19.9 billion for the year. This contrasts sharply with a gain of GH¢13.8 billion reported in the previous year, highlighting the volatility associated with foreign asset valuations.
However, the bank did report a gain of GH¢9.57 billion from the disposal of a portion of its gold holdings in 2025. This sale helped to partially offset the overall net loss, which still amounted to approximately GH¢9 billion before accounting for certain other comprehensive income items.
Shifts in Liabilities and Government Deposits
The bank’s financial statements also revealed significant shifts in its liabilities. Government deposits at the central bank dropped sharply from GH¢29.9 billion to GH¢12.1 billion. Additionally, bridge facilities, which were GH¢4.55 billion in 2024, were reduced to zero.
Liabilities to the International Monetary Fund (IMF) also decreased, falling from GH¢33.0 billion to GH¢21.8 billion. These reductions signal a move towards reduced exposure to government borrowing and a commitment to tighter fiscal discipline, aligning with the zero-financing-of-budget memorandum of understanding signed in April 2023.
Auditors’ Assessment and Economic Context
Despite the substantial operating loss, auditors KPMG maintained that the Bank of Ghana remains operationally sound. They concluded that the bank will continue to operate efficiently and effectively on a going concern basis and achieve its policy mandates.
KPMG noted that an improvement in macroeconomic conditions could alleviate the cost pressures on the bank. “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,” the auditors stated.
Drivers of the Loss and Policy Trade-offs
The Bank of Ghana attributed the loss, in part, to the impact of the Domestic Debt Exchange Programme. This programme reduced the returns on government securities, leading to a sharp fall in the bank’s interest income. The forgone income in 2025 was estimated to exceed GH¢12 billion.
The central bank also highlighted the significant cost of its aggressive liquidity management strategies. The increase in open market operations, from GH¢8.86 billion to GH¢16.7 billion, was a deliberate move to combat inflation. The bank reported that this intervention helped reduce inflation from 23.8% in 2024 to 5.4% in 2025, demonstrating a clear trade-off between price stability and operational costs.
Additional pressures stemmed from the Gold-for-Reserves programme, adverse exchange rate effects, and valuation gaps associated with gold purchases. These factors collectively contributed to the challenging financial outcome for the fiscal year.
Future Outlook and Emerging Risks
Looking ahead to 2026, the Bank of Ghana does not anticipate a repeat of the scale of losses seen in 2025. Key factors expected to reduce the need for costly interventions include a tighter monetary policy stance, declining inflation rates, and improved liquidity conditions within the banking sector.
However, the bank cautioned that residual risks persist. These include potential volatility in global oil prices, ongoing geopolitical tensions, particularly in the Middle East, and tightening external financing conditions, which could impact the broader economic landscape.
The Bank of Ghana stated its commitment to continuing policies aimed at anchoring inflation, stabilizing the exchange rate, and restoring overall macroeconomic stability. Efforts to rebuild a positive equity position are expected to be pursued over the medium to long term.
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