BoG Rejects Minority's 2025 Account Claims

The Bank of Ghana (BoG) has firmly refuted claims by the New Patriotic Party Minority Caucus regarding its 2025 audited accounts. The central bank described the opposition's assertions as misleading. This direct response follows a press conference where the Minority questioned the credibility of the BoG's financial health.

The BoG stated that the Minority's interpretation risks causing unnecessary public alarm. They also contend that it distorts understanding of the Bank's financial position. The central bank explained that a reported surplus of GHS 5.5 billion correctly included a GHS 9.6 billion gain from gold sales. Selling gold reserves to realise gains is a standard practice for central banks globally, aimed at strengthening liquidity. Such gains are legitimate and recognised income, even if they are one-off events.

This dispute occurs amidst broader concerns about Ghana's economic stability and public finance management. The BoG’s financial health is critical for managing inflation and supporting the cedi. Earlier in 2023, the BoG recorded a significant loss of GHS 60.8 billion. This was largely due to the Domestic Debt Exchange Programme (DDEP) and exchange rate depreciations. The current discussion reflects ongoing scrutiny of government and central bank financial decisions.

The BoG stressed that central bank solvency is not assessed like commercial institutions. They maintained that removing the GHS 9.6 billion gold gain to show a deficit was artificial. The central bank argued this action was inconsistent with accepted accounting and central banking frameworks. They also stated that auditors KPMG issued an unmodified opinion on the accounts, indicating no wrongdoing.

Decision-makers and markets will closely watch how this debate unfolds. Clarity on the BoG's financial position is crucial for investor confidence and economic planning. The central bank's detailed explanations aim to reassure the public and financial stakeholders about its operational integrity. Future policy decisions will likely emphasize transparent communication regarding financial reporting.

The BoG further clarified that the official audited loss for 2025 stood at GHS 15.63 billion. This figure comes from total operating income of GHS 22.28 billion and expenses of GHS 37.91 billion. They dismissed the Minority's attempts to combine this figure with GHS 19.3 billion from other comprehensive income for a higher “true loss.” The Bank explained that these two categories are distinct under standard accounting practice. Other comprehensive income includes non-cash items such as exchange rate differences and valuation changes. These items do not reflect operational performance and are not treated as realised losses.

Addressing concerns about rising negative equity, which increased to about GHS 93 billion, the BoG stated this reflects cumulative balance sheet effects. These effects include the Domestic Debt Exchange Programme and exchange rate movements. Central banks can operate effectively with negative equity due to statutory backing and sovereign guarantees. Such situations are not uncommon internationally.

The Bank also addressed the GHS 16.7 billion cost of open market operations (OMO). This figure represents the cost of liquidity sterilisation in a high-interest rate environment. It is part of efforts to reduce inflation. Such costs are expected when central banks use market instruments to absorb excess liquidity and stabilise the economy. The BoG maintains there is no credible way to achieve substantial disinflation without incurring such expenses.