BoG Losses Defended as Necessary Economic Stabilizers
Joe Jackson, CEO of Dalex Finance, has defended the Bank of Ghana's substantial financial losses. He stated these losses are a direct result of necessary policy actions aimed at stabilizing the Ghanaian economy, particularly in bringing down high inflation. Jackson highlighted the significant costs associated with open market operations, a tool used to remove excess money from circulation, as a major driver of these losses. He pointed to the drop in inflation from over 20% to below 5% as evidence of the effectiveness of these measures, despite the financial cost to the central bank.
The Bank of Ghana's reported financial losses are a necessary cost of stabilizing the country's economy. This view was strongly presented by Joe Jackson, Chief Executive Officer of Dalex Finance. He argued that these losses are not a sign of mismanagement but rather a consequence of deliberate policy actions. These actions are specifically designed to make inflation go down.
Mr. Jackson explained that the central bank's financial performance must be seen through the lens of its recent interventions. These interventions are crucial for economic health. A key reason for the losses is open market operations. These are actions the central bank takes to remove excess money from the financial system. The goal is to control prices and make inflation fall. In 2025, these operations alone cost the Bank of Ghana GHS 16.73 billion. This is a significant figure.
The context for these losses is Ghana's ongoing economic challenges. High inflation has been a major concern for many Ghanaians. The Bank of Ghana's efforts to combat it have had a direct financial impact. Inflation has significantly decreased, falling from over 20 per cent to under 5 per cent. Mr. Jackson sees this dramatic reduction as clear evidence that these costly measures were effective. He believes this demonstrates a successful strategy to stabilize prices.
These statements come as the Bank of Ghana faces public scrutiny over its financial results. Recent reports show multi-billion cedi losses, particularly linked to its gold purchase program. Losses in this program rose from GHS 5.66 billion in 2024 to GHS 9.05 billion in 2025. While some officials call these strategic costs, critics worry about their long-term effects. Mr. Jackson has previously voiced concerns about persistent trading losses. He warned they could harm confidence in the central bank if not handled properly.
The Bank of Ghana has refuted claims of poor management. It maintains its losses are planned outcomes. These are part of interventions to shield the economy from global shocks. Stabilizing the national currency, the cedi, is also a key objective. The debate highlights deeper issues within Ghana's economy. Problems like money leaving the country from mining are still a concern. These outflows continue to pressure the cedi. Mr. Jackson’s latest comments suggest that while the losses are large, they are the price paid for short-term economic stability.
This discussion is important for understanding the central bank's role. It shows how monetary policy decisions have real financial consequences. The public will be watching how the Bank of Ghana manages these costs. Future economic stability and confidence depend on it.
Source: StatsGH — Ghana's data-driven news platform