Parliament Majority Defends Bank of Ghana Losses

Accra, Ghana – The Majority in Parliament has defended the Bank of Ghana’s (BoG) 2025 financial results. They stated the reported losses reflect deliberate actions to stabilize Ghana’s economy. The central bank recorded a significant operational loss of GHS 15.63 billion in 2025. This is an increase from GHS 9.49 billion in 2024.

Eric Afful, the MP for Amenfi West and Chairman of Parliament’s Economic and Development Committee, explained these figures at a press conference. He argued that negative equity in a central bank is an accounting issue, not a sign of insolvency. Central banks, he stressed, focus on economic stability, not profit like commercial banks. The current balance sheet shows the cost of stabilising the economy during a difficult period.

Ghana has faced economic challenges, including high inflation and currency depreciation. The Bank of Ghana has implemented strict monetary policies to address these issues. These include raising interest rates and intervening in foreign exchange markets. These actions, while effective in controlling inflation and stabilizing the cedi, often lead to accounting losses for the central bank. Global examples, such as the European Central Bank and the U.S. Federal Reserve, have also seen losses during similar policy tightening periods. The Majority points to these international experiences to support their argument.

Mr. Afful highlighted the positive macroeconomic outcomes attributed to the BoG’s policies. He stated that inflation has fallen into single digits. The Ghanaian cedi has stabilized and even strengthened against major currencies. National reserves have also seen a significant increase. Additionally, interest rates are beginning to ease, and economic growth shows signs of recovery. He believes the Bank's performance should be judged by these broad economic results, not just its balance sheet.

The central bank's losses have been influenced by several factors. These include the cost of managing liquidity in the banking system. Foreign exchange market interventions and gold-related transactions also contributed. While acknowledging concerns about efficiency and transparency, Mr. Afful emphasized that a holistic view of economic recovery is crucial. He reiterated that the Bank of Ghana's main role is maintaining price and financial stability, which have seen improvement.

This defence comes amidst ongoing public debate and scrutiny of the Bank of Ghana’s operations. The Majority aims to counter what they term misinterpretations of the BoG's financial standing. The debate continues over the long-term sustainability of current monetary policies and their impact on public finances.