The National Democratic Congress (NDC) Majority caucus in Parliament has assured Ghanaians that the Bank of Ghana (BoG) is unlikely to record similar financial losses going forward, despite posting a significant deficit in its 2025 financial statements.
Addressing a press conference on Thursday, the Member of Parliament for Sagnarigu, Attah Issah, said the central bank’s reported loss of GH¢15.6 billion in 2025 must be understood within the context of deliberate policy interventions aimed at restoring macroeconomic stability.
He emphasised that the 2025 outcome represented a “peak” driven by exceptional circumstances rather than a recurring trend.
He explained that the losses were largely tied to three major policy costs: aggressive liquidity absorption to tame inflation, heavy investment in gold accumulation to build reserves, and accounting effects arising from the strengthening of the cedi.
According to the caucus, the cost of open market operations—used to reduce excess liquidity—rose sharply as the central bank intensified its fight against inflation.
This intervention, though expensive, contributed to a sharp decline in inflation, easing pressure on households and businesses.
Hon Attah Issah also pointed to the gold-for-reserves programme as a significant cost driver, noting that while the accounting expenses increased, the underlying assets remained intact and contributed to record international reserves.
He further clarified that the appreciation of the cedi reduced the local currency value of foreign reserves on paper, creating large accounting charges rather than actual cash losses.
On the issue of negative equity, the caucus traced its origins to the Domestic Debt Exchange Programme (DDEP) implemented between 2022 and 2023. The restructuring of government securities held by the central bank resulted in substantial impairments and reduced interest income, effects that have continued to weigh on the bank’s balance sheet.
However, the Majority maintained that these structural challenges are being addressed.
The lawmaker outlined four key reasons the central bank is not expected to record similar losses in the future.
First, with inflation significantly reduced, the need for costly liquidity operations has diminished. Second, the sharp decline in the policy rate means the cost of monetary operations has reduced considerably.
Third, the introduction of the Ghana Accelerated National Reserve Accumulation Policy (GANRAP) has restructured the financing of the gold programme, ensuring that future costs will not weigh as heavily on the central bank’s books.
Finally, the caucus noted that with the cedi stabilising, the large revaluation losses recorded in 2025 are unlikely to recur.
The Majority further emphasized that the Bank of Ghana’s ability to perform its core functions remains unaffected by the reported losses. They argued that central banks are not profit-driven institutions, but rather policy institutions mandated to ensure price stability, financial system stability, and overall economic balance.
They added that key economic indicators now point to a recovering economy, with declining inflation, easing lending rates, improved reserves, and renewed investor confidence.
The NDC Majority caucus also welcomed ongoing collaboration between the central bank, government, and Parliament, noting that recent legislative reforms and policy coordination have strengthened the institutional framework for economic management.
Attah Issah indicated that the financial results should be seen as the cost of stabilising the economy, reiterating that the gains achieved—particularly price stability and a stronger currency—far outweigh the temporary financial setbacks recorded by the central bank.
By: Christian Kpesese
