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By Efua Nessa
The Bank of Ghana (BoG) has explained the meaning behind its 2025 financial statements, noting that the figures reflect the financial impact of policy actions rather than a cash loss or signs of institutional distress.
The Bank emphasized that its negative equity—GH¢96.28 billion at year-end, up from GH¢61.32 billion at the start of the year—is a cumulative position carried over from prior years. It does not affect the Bank’s ability to conduct monetary policy.
BoG reported an Operating Loss of GH¢15.63 billion, primarily due to the cost of open market operations to absorb excess cedi liquidity and the Domestic Gold Purchase Programme, which built the country’s reserves. An Other Comprehensive Income (OCI) loss of GH¢19.32 billion reflects the effect of the cedi’s appreciation on the value of foreign-currency reserves.
The Bank highlighted that the financial costs of macroeconomic policies are recorded on its books, while the benefits are seen in national economic outcomes. Key outcomes in 2025 include:
Inflation fell from 23.8% in December 2024 to 5.4% in December 2025, reaching 3.2% by March 2026.
The cedi appreciated by 40.7% against the US dollar.
Gross international reserves increased from US$9.11 billion to US$13.83 billion.
Public debt declined from 61.8% to 45.3% of GDP.
Real private sector credit growth recovered to 13.1% in December 2025 and 19.93% by March 2026.
The Bank expects that as inflation continues to fall and policy rates normalize, the cost of open market operations will decline and its financial position will improve. Stabilized exchange rates and the transition to GANRAP are also expected to reduce reserve accumulation costs and mitigate balance sheet revaluation effects.
In sum, BoG stresses that while the financial statements reflect the cost of policy measures, the economic benefits—lower inflation, a stronger currency, and improved credit conditions—are evident in the country’s broader macroeconomic outcomes.