Bank of Ghana Had GHS 96.3 Billion Negative Equity in 2025

The Bank of Ghana (BoG) reported GHS 96.3 billion in negative equity in 2025. This figure follows a net loss of GHS 15.6 billion and GHS 19.32 billion in other comprehensive income charges for the year. The Majority caucus in Parliament stated this negative equity does not signal insolvency for the central bank.

Instead, the Majority insists these financial outcomes reflect the substantial costs of stabilizing Ghana’s economy during a recent crisis. These costs include direct policy interventions over several difficult years. The central bank's financial position must be viewed differently from a commercial bank's.

This situation comes as Ghana navigates an ongoing economic recovery with high public debt and inflation. Previous reports indicated significant financial burdens on the central bank, which has taken measures to address these challenges. The government aims to restore overall macroeconomic stability.

Eric Afful, Chairman of Parliament's Economy and Development Committee, addressed a press conference yesterday. He emphasized that negative equity in a central bank is an accounting condition and does not imply insolvency. Mr. Afful highlighted the Bank of Ghana's continued effectiveness in its core duties. These duties include ensuring price stability, maintaining financial system stability, managing the national currency, and safeguarding national reserves.

The BoG’s 2025 financial results must be understood within a wider economic and policy context. The losses resulted from deliberate policy choices to restore stability. This includes the Domestic Debt Exchange Programme, which reduced interest income by an estimated GHS 13 billion. Aggressive open market operations, costing about GHS 16 billion, also aimed to control inflation. The appreciation of the cedi and the central bank’s gold accumulation programme, while beneficial for reserves, generated losses due to valuation effects.

These interventions are now yielding positive results. Ghana has seen declining inflation, a stabilizing currency, and improved reserves. Reserves are now estimated at about $13 billion, up from $9.3 billion. The economy expanded by over six percent in 2025. The Majority stated that these outcomes are crucial indicators of success.

Between 2022 and 2024, the central bank recorded cumulative losses of approximately GHS 80.85 billion. This period marked one of Ghana's most severe macroeconomic crises. Inflation surpassed 54 percent in 2022, and the cedi depreciated sharply during this time. The Majority noted that the 2025 losses build on these previous burdens caused by the economic downturn.

Global central banks, like the European Central Bank and the Federal Reserve, have also experienced losses during periods of aggressive monetary tightening. This shows that the Bank of Ghana's situation is not unique. The financial pressures on the Bank are expected to ease as market liquidity normalizes and policy costs decrease. The government remains committed to recapitalizing the central bank over the medium term to strengthen its balance sheet.

The public and media should focus on the broader macroeconomic improvements, according to the Majority. The Bank of Ghana's balance sheet reflects the costs of restoring stability. It also demonstrates efforts to rebuild confidence and secure Ghana's economic future.