Bank of Ghana Faces GHS96.3 Billion Deficit After Inflation Fight
Ghana's central bank, the Bank of Ghana, now faces a negative equity of GHS96.3 billion after combating high inflation between 2024 and 2026. While inflation has fallen sharply from 23.8% to 3.2% and economic growth has rebounded, the Bank's financial health is severely weakened. Large interest payments on open market operations and a net loss of GHS34.95 billion in 2025, even with a one-off gold sale gain, contributed to the deficit. The government has committed to recapitalising the Bank by 2032, a move expected to cost Ghanaian taxpayers through increased taxes, reduced spending, or higher government borrowing.
The Bank of Ghana now has a balance sheet deficit of GHS96.3 billion. This situation arose from its efforts to reduce inflation.
Inflation has dramatically decreased from 23.8 percent in December 2024 to 3.2 percent by March 2026. The central bank sold high-interest securities to commercial banks. This practice, known as Open Market Operations, cost GHS16.7 billion in 2025 alone. The bank's total equity, what it owns minus what it owes, is now deeply negative.
This turnaround occurred during a period of economic recovery. The economy grew by 6.0 percent in 2025. The Bank's Monetary Policy Rate was cut from 30 percent to 14 percent. However, the institution responsible for this success is financially strained. This creates a significant challenge for the nation's public finances.
Professor E. F. Oteng-Abayie, PhD, highlighted these concerns in a recent analysis. The Bank of Ghana recorded a total comprehensive loss of GHS34.95 billion for 2025. A large gold sale in 2025 provided a temporary boost. It generated roughly US$3.6 billion. This sale allowed the bank to report a GH¢9.57 billion gain. Without this, the annual loss would have been much larger.
The government plans to inject capital into the Bank of Ghana. This recapitalisation will happen in phases until 2032. The goal is to restore the Bank's equity to a positive figure. This financial support will likely require increased taxes from citizens. Alternatively, it could mean less government spending on essential services. Higher government borrowing is also a possibility. These measures will impact every Ghanaian for the next seven years.
Ghana continues to benefit from low inflation and solid economic growth. The International Monetary Fund's programme has also been extended to August 2026. However, the Bank's financial recovery is not guaranteed. The recent positive figures partly relied on a one-time gold sale. Any resurgence in inflation or currency pressure could worsen the Bank's position. This might necessitate further government intervention or risk abandoning fiscal discipline.
Source: StatsGH — Ghana's data-driven news platform