Bank of Ghana GHS 15.6 Billion Loss Bought Stability, Says Analyst

The Bank of Ghana recorded a GHS 15.6 billion loss in 2025. This loss represents the financial cost of achieving macroeconomic stabilisation, according to entrepreneur and finance policy analyst Senyo Kwasi Hosi. He argues the central bank’s actions delivered one of Ghana’s most significant economic turnarounds in recent years.

Mr. Hosi stated that public discussion focused too narrowly on the headline loss. People ignored the important policy outcomes that followed the central bank’s actions. He noted that the speed of criticism should match the speed of acknowledging success.

This financial result was mainly due to three policy-related costs. These included GHS 16.7 billion for absorbing excess money in the system through open market operations. There was also GHS 9.1 billion spent on the Domestic Gold Purchase Programme to build national reserves. Finally, GHS 29.1 billion came from foreign exchange revaluation charges, caused by a stronger cedi. Ghana entered 2025 with significant fiscal overspending, amounting to 3.1% of its total economic output, which created excess cash in the banking system.

“These are not commercial losses. They are policy costs; the price of reversing years of fiscal slippages and monetary expansion,” Mr. Hosi wrote in a commentary. He titled his analysis “The BoG Loss That Saved the Economy.” Central banks do not aim to make profits; their job is to keep prices stable, protect the currency, and maintain trust in the financial system. When they act strongly to bring back stability, their financial records show the cost of those actions, but the economic benefits are much greater than these accounting charges.

Mr. Hosi emphasised that the Bank of Ghana had very little choice but to act decisively. The economy faced immense pressures from government spending and too much money circulating in the market at the start of 2025. He pointed to a GHS 36 billion overspend, which was equal to Ghana's entire loan from the International Monetary Fund at the time. This overspending flooded the financial system with extra cash.

The clearest sign of the central bank's successful policies was a dramatic drop in the growth of reserve money and a sharp fall in inflation. Mr. Hosi highlighted data from the Bank of Ghana and the Ghana Statistical Service. This data showed that reserve money growth plummeted from 104.5% in late 2024 to 2.6% by December 2025. Inflation also fell for 13 months straight, from 23.8% to 5.4%, and further to 3.2% by March 2026. This demonstrates strong monetary policy in action, according to Mr. Hosi.

Mr. Hosi explained that open market operations were the central bank’s most effective tool against inflation during this period. By selling financial instruments, the Bank removed excess money from the economy. This significantly slowed down the growth of reserve money and helped to reduce inflationary pressure. He asserted that the GHS 16.7 billion cost for these operations was an investment that paid off, not a loss.

He also defended the GHS 29.1 billion foreign exchange revaluation charge. This was an accounting effect, not a loss of actual cash. The cedi grew stronger by 40.7% in 2025, which reduced the cedi value of the Bank’s foreign assets. Mr. Hosi clarified that no reserves were lost and no money left the central bank. It was simply a paper loss on the books due to the cedi's appreciation. For example, if USD 100 was worth GHS 1,470 in 2024, it became GHS 1,045 in 2025 because the cedi got stronger. The USD 100 remained the same; the change was only in its cedi equivalent.

Furthermore, Mr. Hosi supported the GHS 9.1 billion Domestic Gold Purchase Programme. This programme increased Ghana's gold reserves from USD 9.1 billion to USD 13.8 billion. Ghana now has enough reserves to cover 5.7 months of imports. The programme expanded to 111 metric tonnes of gold in 2025. This was a smart investment for national resilience and contributed to the cedi’s strength.

The broader economic benefits are significant. These include inflation dropping to a single digit and the cedi gaining about 40% in value. Households and businesses saved over GHS 60 billion in import costs. The government saved more than GHS 12 billion on foreign exchange-linked expenses. Public debt decreased from 61.8% to 45.3% of the total economic output. The country now has record high reserves, lower interest rates for borrowing, and renewed trust in its currency. Mr. Hosi concluded that the Bank of Ghana’s 2025 loss was not a sign of poor management. Instead, it proved that the central bank effectively used its financial power to bring back stability during a critical time.