GH¢96bn negative equity, but not a failure, analysts say BoG losses are the price of taming inflation, not incompetence.
The Bank of Ghana’s (BoG) 2025 Annual Report, which recorded a GH¢15.63 billion operating loss, GH¢34.95 billion total comprehensive loss and a widening negative equity position of GH¢96.3 billion, has sparked debate among critics; however, analysts argue the figures must be understood in broader global and policy context. Central banks such as the European Central Bank, the Federal Reserve and the Bank of England have also reported significant losses due to aggressive inflation-fighting policies, where interest expenses exceeded income following monetary tightening. In Ghana’s case, the BoG’s losses are largely attributed to open market operations used to curb inflation, revaluation effects from cedi appreciation, and accounting treatments under statutory frameworks rather than operational failure. The report further notes that Ghana’s Domestic Debt Exchange Programme contributed to negative equity, while recent macroeconomic indicators—such as declining inflation, stabilising exchange rates, and improved credit growth—suggest recovery. The Bank also benefited from gold-related reserve gains under its Domestic Gold Purchase Programme, which strengthened external buffers despite accounting losses. According to the analysis, the 2025 results reflect the cost of restoring price stability rather than institutional weakness, with recapitalisation plans in place to restore the central bank’s financial position over time.
