MP Queries Bank of Ghana GH¢15.6 billion Loss for Economic Stability

Dr. Gideon Boako, a member of Parliament’s Finance Committee, has questioned the scale of losses suffered by the Bank of Ghana. He stated that economic stability should not come at a cost of GH¢15.6 billion. The central bank reported this significant loss for the year 2025. Dr. Boako expressed his concerns on JoyNews’ Newsfile program. He acknowledged improvements in macroeconomic stability. However, he finds the cost of achieving this stability unacceptable. He believes that huge losses are not necessary for stabilizing an economy.

Dr. Boako pointed to Ghana’s past economic performance. Between 2017 and 2019, the country experienced strong growth. This period saw average growth of around 7 percent for three years. Inflation remained in single digits for almost two years. The government also recorded a primary balance surplus, meaning it earned more than it spent before paying interest on debt. During these years, Ghana achieved stability without incurring such large losses at the Bank of Ghana. Dr. Boako highlighted sustained growth and fiscal improvements as evidence. He contrasted this with the current situation.

The recent economic performance occurred after significant shocks between 2020 and 2022. These shocks required policy interventions. Aggressive measures were taken to control inflation. Dr. Boako acknowledged these necessary actions. However, he stressed that the scale of losses linked to these interventions needs scrutiny. He stated that containing a crisis does not mean accepting any cost without question. Policymakers must ensure that stabilization efforts have proportionate and sustainable costs. He emphasized this point, advocating for prudent financial management.

The Bank of Ghana’s financial performance is crucial for public confidence. Central banks manage monetary policy. They also act as a lender of last resort. Significant losses can impact their ability to perform these functions. This may also affect the strength of the Ghana cedi. High losses can signal underlying economic problems. These include issues with monetary operations or overall fiscal health. Dr. Boako’s comments suggest a debate about the effectiveness and efficiency of the Bank of Ghana's recent strategies. The implications extend to investor confidence and the broader economic outlook for Ghana.

The Bank of Ghana faces increased scrutiny following this disclosure. The GH¢15.6 billion loss represents a substantial amount of public money. Investors and analysts will closely monitor the central bank’s plans. They will look for strategies to mitigate such losses in the future. Future policy decisions will likely consider the balance between economic stability and financial prudence. Dr. Boako’s call for proportionality aims to shape future economic management. The public will expect transparency and accountability in the Bank of Ghana’s operations.