Editorial: Bank of Ghana answers critics

The nation’s central bank, the Bank of Ghana (BoG), has defended its financial position for 2025 – insisting that despite recording a GH¢15.6billion operating loss and negative equity, it remains capable of delivering on its core monetary policy mandate.

This comes against a background wherein the minority caucus in parliament launched a blistering critique of the Bank of Ghana (BoG) following release of its 2025 audited financial statements.

The caucus declared that the central bank’s true financial condition has been deliberately obscured and warned that the institution is now facing what they describe as “policy insolvency”.

However, in a strong rebuttal BoG said that it remains “policy solvent” – meaning it has the internal capacity to implement key monetary policy actions such as controlling inflation and managing interest rates without relying on emergency government support.

It argued that recent economic developments will require continued intervention through these operations, but stressed it still has the capacity to finance them internally.

It noted that its “financial performance over the medium-term is assessed against Ghana’s macroeconomic trajectory”.

Looking ahead, the Bank projected that between 2026 and 2030 the economy is expected to record sustained real GDP growth and lower inflation following a prolonged disinflation process and stabilised external sector.

BoG also explained that as monetary policy shifts toward easing, pressure on its earnings structure is expected to reduce.

The Bank further said its outlook is anchored on disinflation trends, structural improvements in income and government-backed recapitalisation.

The Bank of Ghana disclosed that its negative equity worsened to GH¢93billion in 2025, attributing this mainly to the Domestic Debt Exchange Programme and monetary policy operations during 2024 and 2025.

Government has acknowledged its obligation to restore the Bank’s capital base under the Bank of Ghana Act, 2002 (Act 612), as amended. A phased recapitalisation programme has been agreed between the Bank and Ministry of Finance.

Under the plan, government will inject instruments and/or cash between 2026 and 2032 to rebuild the Bank’s capital position.