The Bank of Ghana (BoG) has defended its financial position for 2025, maintaining that it remains capable of effectively delivering on its core monetary policy mandate despite recording a GH¢15.6 billion operating loss and deepening negative equity.
In its 2025 financial statement, the Central Bank stressed that it remains “policy solvent,” underscoring its ability to execute key monetary policy functions, including inflation control and interest rate management, without relying on emergency government support.
According to the Bank, this position is anchored in its capacity to generate sufficient income through monetary policy operations, particularly open market operations used to manage liquidity, inflation, and exchange rate pressures.
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The BoG acknowledged that prevailing economic conditions will require sustained intervention through these mechanisms but emphasized that it retains the internal financial strength to support such actions.
It further highlighted that structural improvements in its income base, alongside an agreed recapitalisation programme with government, provide a strong foundation for its medium-term outlook.
“Its financial performance over the medium term is assessed against Ghana’s macroeconomic trajectory.”
Looking ahead, the Bank projects that between 2026 and 2030, Ghana’s economy will experience sustained real GDP growth, a continued decline in inflation following an extended disinflation period, and a more stable external sector.
These macroeconomic improvements, the Bank noted, are expected to gradually strengthen its financial position.
“These conditions… are expected to progressively improve the Bank’s net interest income, reduce interest expense on reserve accumulation, and restore cumulative profitability over the forecast horizon.”
The BoG added that returns from its external reserves will remain a key income driver.
“As the external reserve portfolio continues to generate returns at prevailing global interest rate levels, its ability to run its operations should not be a challenge at all going forward.”
It also indicated that a shift toward a monetary easing cycle would ease pressure on its earnings structure.
“As the monetary policy cycle transitions to an easing phase, the compression in the net interest margin… is expected to moderate.”
Equity Position Concerns
Despite its assurances, the Bank disclosed that its negative equity position worsened significantly to GH¢93 billion in 2025. This deterioration was largely attributed to the impact of the Domestic Debt Exchange Programme and the cost of monetary policy operations undertaken in 2024 and 2025.
The Central Bank noted that the government has acknowledged its statutory obligation to restore its capital base under the Bank of Ghana Act, 2002 (Act 612), as amended.
“A phased recapitalisation programme has been agreed between the Bank and the Ministry of Finance.”
Under the arrangement, the government is expected to inject financial instruments and/or cash between 2026 and 2032 to rebuild the Bank’s capital position.
“The recapitalisation inflows… are expected to result in positive net equity by 2032,”
the Bank stated, adding that the plan will restore reserves to prudent buffer levels and enhance long-term financial resilience.
It further emphasized that the recapitalisation programme will help reduce vulnerability to short-term income fluctuations.
“The proposed recapitalisation plan will further strengthen the Bank’s financial resilience by augmenting its capital base.”
Overall, the BoG maintains that despite current financial pressures, its policy credibility, operational capacity, and forward-looking reforms position it to sustain monetary stability and support Ghana’s economic recovery.
