Sefwi MP Defends Bank of Ghana Operations Amidst Losses

The Member of Parliament for Sefwi Wiawso, Kofi Benteh Afful, strongly defended the Bank of Ghana (BoG) against its critics. He stated that those questioning the central bank’s recent financial loss are working towards the nation's economic downfall. Mr. Afful argued that the BoG operates under different principles than commercial banks. Its core mission is ensuring the stability of the entire economy.

Central banks like the BoG focus on managing inflation and the national currency's value. They also maintain sufficient foreign exchange reserves for imports. These activities are crucial for a healthy economy. Mr. Afful stressed that profit generation is not the central bank's main objective. He presented this view in an interview on Joy FM's Top Story on Tuesday, May 5. He believes that concerns about the BoG's financial performance are misplaced.

This defence comes amid broader discussions about Ghana's economic health. The nation has been working to recover from past economic challenges. Improved macroeconomic indicators are often cited as signs of progress. Mr. Afful pointed to a significant drop in inflation to 3.2 per cent. He also noted that interest rates have fallen to a more manageable range between 10 and 15 per cent. Foreign exchange reserves are now enough to cover over five months of imports. These figures suggest a more stable economic environment.

Mr. Afful’s comments directly respond to former Finance Minister Mohammed Amin Adam. Mr. Adam had petitioned the International Monetary Fund (IMF). He raised concerns about the Bank of Ghana's audited 2025 financial statements. Specifically, he highlighted the worsening negative equity on the bank's books. This negative equity signifies that the bank's liabilities exceed its assets. Mr. Adam warned that this situation could jeopardise Ghana's economic stability. He urged the IMF to protect the progress made under its Extended Credit Facility programme.

Mr. Afful highlighted that the negative financial balances within the BoG are a result of deliberate actions. These actions were taken to actively stabilise Ghana's economy. He stated that the central bank used its resources to achieve these positive outcomes for the country. The MP suggested that critics should consider what the economic situation would be without the central bank's interventions. He implied that some critics are motivated by political reasons rather than genuine economic concerns. Increased business activity in the banking sector also signals growing confidence in the economy, according to Mr. Afful.

The debate underscores the delicate balance central banks must strike. They aim to foster economic growth and stability. This sometimes requires interventions that may impact their balance sheets. Rating agencies have noted Ghana's improved financial footing. This is often a positive sign for investors. The ongoing discussion will likely shape future policy decisions. It also influences international perceptions of Ghana's economic management. The public and policymakers will watch closely how these performance metrics are interpreted and addressed.