Bank of Ghana Reports GHS 15.6 Billion Loss

The Bank of Ghana (BoG) reported an operating loss of GHS 15.6 billion for 2025. It also revealed a widening of its negative equity to GHS 93 billion in the same year. Despite these figures, the central bank states it remains able to perform its core functions.

The central bank explained its financial position, asserting it is “policy solvent.” This means it can still manage monetary policy, including controlling inflation and setting interest rates. The BoG does not require immediate government financial support for these operations. It generates income from monetary policy tools, such as open market operations, which help manage liquidity and exchange rates.

This financial situation fits into Ghana's broader economic narrative of overcoming recent challenges. Ghana has recently embarked on an International Monetary Fund (IMF) programme to stabilise its economy. The Domestic Debt Exchange Programme, which restructured government debt, played a significant role in the BoG's losses. This program aimed to make Ghana's public finances more sustainable. Improving the central bank's financial health is crucial for long-term economic stability.

The Bank of Ghana stated, "its financial performance over the medium term is assessed against Ghana’s macroeconomic trajectory." It expects stronger economic conditions between 2026 and 2030, which should gradually improve its finances. These improvements include steady GDP growth and lower inflation. A more stable external sector will also contribute to this recovery.

The main cause of the negative equity increase was the Domestic Debt Exchange Programme. Monetary policy operations in 2024 and 2025 also contributed to the losses. The government has acknowledged its legal duty to restore the central bank's capital base. This responsibility comes from the Bank of Ghana Act, 2002 (Act 612), as amended.

The BoG and the Ministry of Finance have agreed on a phased recapitalisation programme. The government will provide cash or financial instruments between 2026 and 2032. This support aims to rebuild the central bank’s capital position. These recapitalisation inflows are expected to result in positive net equity by 2032. This plan will help restore adequate financial buffers and improve financial resilience.

Looking ahead, the central bank anticipates an easing monetary policy cycle. This shift should moderate the compression in its net interest margin. It expects improved income structure and government-backed recapitalisation to bolster its outlook. Stakeholders will watch closely to see if the planned economic improvements take hold. The success of the recapitalisation programme is vital for investor confidence. It will also impact the overall health of Ghana's financial sector and its ability to attract foreign investment. The central bank's financial stability supports the broader economy. It ensures consistent control over inflation and interest rates.