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ALWAYS FRED > Business & Economy > BoG’s GH¢15.6bn loss overshadows policy gains, official says as recapitalization plan confirmed
bank of ghana
Business & Economy

BoG’s GH¢15.6bn loss overshadows policy gains, official says as recapitalization plan confirmed

May 2, 2026 6 Min Read
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financial institution of ghana

The Financial institution of Ghana (BoG) recorded a web lack of GH¢15.63 billion in 2025, in comparison with GH¿9.49 billion the earlier 12 months, as aggressive financial tightening and the price of gold reserve accumulation weighed on its books. The deficit was virtually double that of the earlier fiscal 12 months. However authorities officers say the numbers, whereas alarming, mirror coverage successes reasonably than system failures.

The central financial institution’s 2025 audited monetary statements, launched on April 30, 2026, revealed that monetary establishments are below vital monetary strain. Complete liabilities considerably exceeded complete property, and the central financial institution’s unfavorable fairness place amounted to CHF93.82 billion, considerably wider than the CHF58.62 billion reported on the finish of 2024. The primary issue within the steadiness sheet weak spot remained Ghana’s home debt alternate program, which imposed vital losses on the federal government bonds held by the Financial institution as a serious creditor.

The one largest contributor to losses in 2025 was the price of open market operations (OMO), which amounted to GH¢16.7 billion, virtually double the GH¢8.6 billion recorded in 2024. These operations, together with the issuance of short-term monetary devices to soak up extra liquidity from the banking system, are central to the BoG’s inflation management technique, however they arrive with vital curiosity prices. The strengthening of those companies in 2025 immediately contributed to the rise in losses.

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Regardless of the headline numbers, officers spoke on TV3’s Key Factors program on Saturday, Could 2, 2026, and pushed again in opposition to the characterization of systemic struggling. The central financial institution’s head of gold administration, Paul Bourbous, referred to one of the crucial controversial figures in public debate: the accounting price recorded below the Home Gold Buy Program (DGPP) of GH¢9.05 billion in 2025, up from GH¢5.66 billion in 2024. “DGPP losses must be interpreted as program prices reasonably than losses,” he mentioned, explaining that the obvious shortfall stems from a structural accounting hole between overseas exchanges. The central alternate fee at which gold is bought and the official fee recorded within the financial institution’s books.

Bleboo supplied historic context for this system’s growth. From 3.5 tonnes procured in 2022 at a value of GHF74 million, DGPP quickly expanded to 37 tonnes in 2023 and 56 tonnes in 2024 with the introduction of the “gold for oil” coverage. By 2025, this system could have accrued greater than 100 tonnes, with the BoG storing roughly 18.6 tonnes of gold. Portfolio after intentional rebalancing.

The rebalancing was individually addressed by the Director-Normal of the Monetary Markets Division, Gershon Cudjo Agbresorwu, who confirmed that the central financial institution’s board had resolved to cut back the share of gold bars that exceed internationally acknowledged requirements within the second half of 2025. He famous that because of the affect of file international gold costs, gold has risen to roughly 42% of Ghana’s complete worldwide reserves by the tip of 2025, and mentioned that “finest follow for the bullion composition of reserves is to not exceed 20%.” The sale of roughly 19 tonnes resulted in realized earnings of over US$1.3 billion, which have been retained throughout the reserves portfolio reasonably than being repatriated or expended. Complete overseas alternate reserves elevated from USD 9.1 billion on the finish of 2024, equal to 4.1 months of import cowl, to USD 13.8 billion, equal to five.7 months of import cowl, by the tip of 2025.

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On the query of central financial institution viability, officers pointed to an idea often called coverage solvency, or the power of a central financial institution to fund its monetary operations from its personal revenues with out exterior assist. In 2025, the central financial institution recorded an working revenue of GH¢5.5 billion after bills for OMO actions, in contrast with GH¢793.5 million in 2024. Officers mentioned this determine is affirmation that the Financial institution can proceed to conduct financial coverage independently.

Trying to the longer term, the central financial institution has signed a proper recapitalization settlement with the Ministry of Finance overlaying the interval 2026 to 2032. Beneath the settlement, the federal government will inject capital in a structured section, both in money or monetary devices, with the intention of restoring constructive capital and rebuilding the central financial institution’s monetary resilience. The success of this program, together with continued deflation and alternate fee stability, will likely be central to the central financial institution’s restoration trajectory.

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