The Minority Caucus of Parliament has launched a fierce criticism of the Financial institution of Ghana (BoG) following the discharge of its 2025 audited monetary statements.
The caucus declared that the central financial institution’s true monetary scenario was being intentionally hid and warned that the central financial institution was now going through what it described as a “coverage chapter.”
Talking at a packed press convention in Parliament, led by Kodjo Oppong Nkrumah, a senior member of the Financial Improvement Committee, the minority mentioned an evaluation of the Financial institution’s 136-page report confirmed long-held issues in regards to the central financial institution’s trajectory beneath the present administration.
“We’re not right here to brag about forewarning, however to share with Ghanaians the numbers that the federal government needed to cover and the alarming implications they reveal,” Oppong Nkrumah mentioned.Battle over pre-release model of “Spin”
The minority’s speech follows an earlier press convention by the bulk caucus, led by Atta Issa, which sought to defend the anticipated losses even earlier than the official account was launched.
The transfer has been strongly criticized by minorities as unlawful and a politicization of the central financial institution.
The minority cited Part 58 of the Banking of Ghana Act, which requires the Financial institution of Ghana to submit audited accounts to the Minister of Finance, who should submit them to Parliament fairly than submitting them to political events for a public briefing.
“What occurred was not solely irregular, it was a blatant try to politicize the Financial institution of Ghana and form public opinion earlier than the details have been recognized,” the minority argued.
Claiming “insurance coverage chapter”
On the coronary heart of the minority’s argument is the declare that the Financial institution of Ghana is in ‘coverage failure’, that means that it’s now not in a position to fund its core monetary operations from its personal revenues.
In response to the chief committee, the Financial institution reported working revenue of GH¢22.2 billion in comparison with open market operations (OMO) bills of GH¢16.7 billion, however this obvious surplus is deceptive because it features a one-time acquire of GH¢9.6 billion from the sale of gold.
The minority argued that eradicating that non-recurring revenue would scale back working revenue to GH¢12.7 billion, leading to a deficit of roughly GH¢4 billion and putting the Financial institution in a unfavourable coverage solvency place.
“Central banks that must promote gold to keep away from chapter are working on borrowed time,” Oppong Nkrumah warned.
Controversy over “true loss” numbers
The minority additional disputed the broadly reported complete lack of GH¢15.6 billion, arguing that the precise loss was considerably larger when all elements have been taken under consideration.
They famous that a further GH¢19.3 billion will probably be recorded in different complete revenue (OCI), bringing the full loss to roughly GH¢34.9 billion.
They estimate that the true loss may attain GH¢44 billion after adjusting for beneficial properties on gold gross sales.
“It is a quantity we didn’t need Ghanaians to see,” the minority mentioned, accusing the federal government of utilizing accounting procedures and asset gross sales to scale back complete losses.
Accounting requirements beneath scrutiny
The press convention additionally drew consideration to issues raised by auditors concerning the accounting requirements used within the monetary statements.
In response to the minority, the accounts weren’t ready in full accordance with Worldwide Monetary Reporting Requirements (IFRS), however fairly primarily based on the Financial institution’s inner accounting insurance policies, a place famous by the auditors and acknowledged by the Financial institution’s administrators.
This, they argued, would enable massive losses, notably overseas change revaluation losses, to be transferred to OCI, thereby decreasing the general reported deficit.
Reversal of restoration development
The minority painted a broader image of the deterioration, noting that banks have been on a restoration path till 2025.
They cited official figures comparable to:
Loss in 2023: GH¢13.23 billion
Loss in 2024: GH¢9.49 billion
Loss in 2025: GH¢15.63 billion
They are saying the advance recorded in 2024 has reversed, with losses and unfavourable fairness considerably worsening in 2025.
“The central financial institution was recovering, however now it’s getting worse,” Oppong Nkrumah mentioned.
Criticized coverage choices
A minority believed that this case was resulting from particular coverage shifts, together with:
Abandoning the dynamic money reserve ratio system that helped present liquidity at low value
Adjustments in financial institution overseas change reserve necessities
They declare that adjustments to the gold buying program have shifted prices to the Financial institution of Ghana whereas different entities have reported advantages.
They declare these choices have led to larger sterilization prices, a pointy rise in excellent central financial institution payments and curiosity funds to business banks of over GH¢14 billion.
“Wealth switch” to banks
One of many minority’s most putting arguments was that the Financial institution’s operations successfully resulted within the switch of public funds to business banks, which made file earnings primarily from their holdings in central financial institution merchandise.
“This isn’t financial coverage. It is a switch of wealth from the general public stability sheet to the non-public stability sheet,” the minority mentioned.
They warned that this dynamic was limiting credit score to the non-public sector, particularly small and medium-sized enterprises and younger entrepreneurs.
Affect on the true financial system
Past monetary statements, the minority argued that macroeconomic stability has not translated into improved residing situations.
They quoted as follows:
Tight financial liquidity
Personal sector credit score development is weak
excessive value of residing
Rising youth unemployment price
Challenges going through farmers, academics and well being staff
“Inhabitants stability shouldn’t be the identical as livelihood stability,” Oppong Nkrumah harassed.
Political distinction with previous positions of the NDC
The minority additionally highlighted what it described as a contradiction within the NDC’s place, recalling that in 2023, the then opposition get together labeled the Financial institution of Ghana a “crime scene” and demanded accountability for small losses.
“By their very own requirements, what ought to they are saying right this moment?” the minority requested.
name for reform
Regardless of their sharp tone, the minority mentioned their purpose was to not have fun what was proper, however to push for pressing reforms to stabilize the central financial institution.
The 2 leaders introduced plans to current a sequence of coverage options later this week to revive the Financial institution’s monetary well being and defend its independence.
Oppong Nkrumah concluded: “There is no such thing as a victory in doing the best factor when the nation is bleeding.” “The necessary factor now could be to behave to forestall additional injury.”
decide the financial debate
The minority’s current intervention units the stage for an intensified nationwide debate over the true nature of the Financial institution of Ghana, the prices of financial stabilization, and the stability between coverage selections and monetary sustainability.
