Bank of Ghana records GHS 15.6 billion operating loss

The Bank of Ghana (BoG) reported an operating loss of GHS 15.6 billion for 2025. This figure marks a significant increase from the GHS 9.4 billion loss recorded in 2024, according to its audited financial statements.

These substantial losses stemmed primarily from the escalating costs associated with the central bank's liquidity management operations. Negative equity, meaning liabilities exceeded assets, widened to GHS 93.82 billion in 2025, up from GHS 58.62 billion in 2024. This occurred despite an overall increase in the BoG's total assets to GHS 237 billion.

The central bank's financial difficulties reflect the broader economic challenges Ghana faces, particularly inflation and exchange rate volatility. The government's Domestic Debt Exchange Programme also significantly impacted the BoG, reducing income from government securities. The BoG estimated over GHS 12 billion in foregone interest income due to this programme. These factors collectively highlight the strains on Ghana's financial system and the central bank's role in managing these pressures.

KPMG, the auditor, stated that the central bank remains operational despite its losses. This outlook is based on expectations of improving macroeconomic conditions in Ghana. The auditor predicts that declining inflation will lead to lower interest rates, reducing the cost of open market operations. Exchange rate stability is also expected to help control future losses.

The BoG does not anticipate a repeat of the 2025 performance. It projects that tighter monetary policy, lower inflation, and improved banking sector liquidity will reduce the need for costly interventions. The central bank, however, warned about persistent risks, including volatile global oil prices, geopolitical tensions in the Middle East, and tighter external financing conditions. It will continue efforts to stabilize inflation and the exchange rate while working to rebuild positive equity over the medium to long term.

The cost of open market operations, which the central bank uses to manage the money supply, nearly doubled to GHS 16.7 billion. Sterilization liabilities, funds removed from circulation to control inflation, surged by 186% to GHS 93.6 billion. These liabilities are essentially money owed to commercial banks.

Exchange rate movements further compounded the BoG's losses. A nearly 40% appreciation of the Ghana cedi resulted in a revaluation loss of GHS 23.6 billion. This loss was on assets such as gold, Special Drawing Rights, and foreign securities. The reclassification of gains on gold holdings also contributed to a total other comprehensive income loss of GHS 19.9 billion, a stark contrast to a GHS 13.8 billion gain in 2024. A GHS 9.57 billion gain from the disposal of some gold reserves partially offset these overall losses.

Government deposits at the central bank decreased from GHS 29.9 billion to GHS 12.1 billion. Outstanding bridge financing to the government reduced to zero, matching a 2023 agreement to stop monetary financing of the budget. This move aims to enhance fiscal discipline and reduce the central bank's exposure to government debt.