Bank of Ghana Reports GHS 15.6 Billion Operating Loss

The Bank of Ghana (BoG) reported a substantial operating loss of GHS 15.6 billion for the year 2025. It also revealed negative equity. The central bank insists these financial setbacks do not hinder its ability to conduct monetary policy.

BoG maintains it is "policy solvent." This means it can still implement key financial actions. These include controlling inflation and managing interest rates. It does not need urgent government help for these functions. The bank's 2025 financial statement explains this position. It relies on income from its regular policy operations. Open market operations are a primary source of this income. These operations help manage money supply, inflation, and currency pressures.

This situation fits into Ghana's broader economic picture. The country has faced significant economic challenges recently. These include high inflation and debt burdens. The Bank of Ghana's own financial health is tied to the nation's economic stability. Prior actions, like the Domestic Debt Exchange Programme in 2024, have impacted its balance sheet. This programme involved restructuring government debt.

The Bank of Ghana stated that "its financial performance over the medium term is assessed against Ghana’s macroeconomic trajectory." It projects sustained economic growth from 2026 to 2030. Inflation is expected to fall after a long period of decrease. The external sector is also forecast to stabilise. These positive economic signs should help strengthen the Bank's finances over time.

Looking ahead, the Bank expects these conditions to boost its income. It anticipates improved net interest income. Reserve accumulation interest costs should decrease. Cumulative profitability is predicted to return within the forecast period. Returns from its holdings of foreign currency reserves will also support income. Returns at current global interest rates should ensure operations continue smoothly.

The negative equity position, which worsened to GHS 93 billion in 2025, is directly linked to the Domestic Debt Exchange in 2024. It also stems from monetary policy actions in 2024 and 2025. The Bank of Ghana Act, 2002 (Act 612), requires the government to restore the Bank's capital. A phased recapitalisation plan is in place with the Ministry of Finance.

The government will inject funds or assets between 2026 and 2032. This injection aims to rebuild the Bank's capital. Positive net equity is expected by 2032. This recapitalisation will restore reserves to a safe level. It will also make the Bank more resilient. Financial sensitivity to short-term income changes will decrease.

The Bank's outlook relies on falling inflation. It also depends on improvements in its income sources. Government-backed recapitalisation is a key factor. As monetary policy shifts towards easing, pressure on the Bank's earnings might reduce. The compression in the net interest margin is expected to moderate. This means the difference between earnings from loans and interest paid on deposits could become less tight.

The recapitalisation plan is crucial for strengthening the Bank's financial resilience. It will augment its capital base significantly. The Bank believes its ability to carry out its mandate is not compromised. It will continue managing inflation and currency stability.