Omanghana
The Bank of Ghana has reported a comprehensive loss of GH₵15.2 billion for the 2025 financial year, a significant deficit that follows an even larger GH₵60.8 billion loss recorded in 2022. Despite the scale of the losses, the central bank and several economists insist they were a necessary cost to stabilize Ghana’s economy during a period of severe financial stress.
Governor Ernest Addison explained that the losses were largely driven by the bank’s role in implementing the Domestic Debt Exchange Programme and broader efforts to restore macroeconomic stability. As part of the debt restructuring process, the central bank absorbed substantial losses through write-downs on government securities, helping to reduce the country’s debt burden.
Additional costs came from monetary policy actions aimed at controlling inflation. The Bank of Ghana engaged in extensive open market operations, paying high interest rates to commercial banks to absorb excess liquidity from the economy. These measures were necessary to slow inflation but came at a significant financial cost. The bank also recorded impairment charges as it restructured its balance sheet to meet the requirements of the Extended Credit Facility supported by the International Monetary Fund.
Government officials and some analysts have defended the losses, describing them as a strategic sacrifice. They argue that without these aggressive interventions, inflation would not have fallen from a peak of 54 percent in 2022 to 3.2 percent by March 2026. They also point to improved currency stability, noting that the Ghana cedi remained relatively steady throughout 2025, providing a more predictable environment for businesses.
Supporters further argue that these measures were essential for Ghana to remain on track with its IMF program and successfully complete its final review ahead of a planned exit in August 2026.
However, the losses have sparked political debate. The Minority in Parliament has criticized the central bank’s performance, describing the deficit as a sign of poor financial management. In contrast, the Majority maintains that the Bank of Ghana’s primary responsibility is to ensure price stability and economic stability, not to generate profits.
Analysts also note that Ghana is not alone, as several central banks around the world—including the Swiss National Bank and the De Nederlandsche Bank—have reported similar losses in recent years due to rising global interest rates and post-inflation economic adjustments.
Source: Omanghana
