Accra: The Bank of Ghana (BoG) has found itself at the center of intense scrutiny after publishing its audited financial statements for 2025, revealing a significant net loss of $1.25 billion.
According to Ghana Web, this revelation has stirred political tensions in the country, as it emerged that the BoG's total comprehensive losses reached $2.80 billion due to a stronger cedi's impact on dollar assets' domestic-currency value. The cumulative negative equity soared to $9 billion by the end of 2025, highlighting the precarious state of the central bank's financial health.
The BoG's financial situation is a result of various factors, including its involvement in gold operations and exposure to the Ghana Gold Board (GoldBod). The bank's activities, such as creating money to purchase gold and then selling it for dollars, have contributed to the rise in Ghana's foreign reserves. However, the process has also led to increased circulation of cedis in the economy, necessitating sterilization efforts to prevent inflation.
The cost of sterilization, along with other operating expenses, has exacerbated the BoG's financial woes. The central bank's operating expenses in 2025 reached $3.03 billion, surpassing its total operating income of $1.78 billion, resulting in the annual loss. The BoG's policy solvency, crucial for maintaining monetary policy effectiveness, was only achieved through a one-off gain from selling a large portion of the country's gold reserves.
Scrutiny extends to the BoG's financial statements, which revealed questionable items within 'other operating income' and a significant jump in 'other assets,' raising concerns about the transparency and accuracy of the reported figures. These issues, combined with the central bank's negative equity, pose potential risks to Ghana's economic stability.
The BoG's negative equity could lead to several adverse outcomes, including increased sterilization costs, passive money creation, and a weakened consolidated fiscal position. The central bank's financial challenges may also impact the government's ability to recapitalize the BoG, given the competing demands on the fiscal budget.
Looking forward, the BoG's reliance on the Domestic Gold Purchase Programme (DGPP), now rebranded as the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), presents structural risks. The program's financial cost and potential for diminishing returns underscore the need for alternative approaches to reserve accumulation.
While the BoG's current financial predicament may not spell immediate disaster, the sustainability of its operational model is questionable. The central bank's ability to maintain policy solvency and navigate future economic shocks depends on addressing the structural issues within its financial operations and ensuring greater transparency in its financial reporting.
The situation calls for citizens' attention, as the BoG's financial health directly impacts inflation, borrowing costs, government spending, and currency stability. Ensuring the BoG's long-term viability is essential for Ghana's economic resilience and growth.