Accra: The Founder and Managing Partner of Songhai Group, Hene Aku Kwapong, is urging the government to reassess Ghana's monetary policy framework, cautioning that the financial condition of the Bank of Ghana could affect economic stability and credibility.
According to Ghana Web, the concerns arise from discussions about the Bank of Ghana's financial performance in 2025, which revealed an operating loss of approximately GHS15.6 billion. This loss is compounded by increasing negative equity and rising costs associated with liquidity operations, exchange rate pressures, and debt restructuring. Despite these issues, the central bank maintains that it remains policy solvent, asserting that its core income is still adequate to support its monetary policy operations.
Kwapong, speaking on The Point of View on Channel One TV, emphasized the need for policymakers to carefully balance priorities when managing the economy. He highlighted that central banking decisions are influenced by an 'impossible triangle' involving independence, exchange rate stability, and capital controls. He explained that managing these competing objectives requires difficult trade-offs, especially in challenging economic conditions.
Kwapong also warned that the central bank's increasing negative equity and broader financial pressures could hinder its ability to respond effectively to currency challenges. He noted that the situation extends beyond the balance sheet figures, emphasizing that institutional credibility is also at risk. He called for a strategic evaluation of these challenges to manage them effectively moving forward.