The Bank of Ghana (BoG) has defended its financial position for 2025, stating that despite recording a GH¢15.6 billion operating loss and negative equity, it retains the capacity to execute its core monetary policy mandate.
In its 2025 financial statements, the central bank maintained that it remains “policy solvent,” indicating that it can continue to implement key policy measures—such as controlling inflation and managing interest rates—without reliance on emergency government support.
The Bank attributed this resilience to its ability to generate income from monetary policy operations, particularly open market operations used to manage liquidity, inflation, and exchange rate pressures. It noted that while ongoing economic conditions may necessitate continued intervention, it has the internal capacity to finance these activities.
According to the BoG, its medium-term outlook is supported by structural improvements in its income base and a recapitalisation programme agreed with the government. It added that its financial performance will be closely aligned with Ghana’s broader macroeconomic trajectory.
The Bank projects that between 2026 and 2030, the economy will experience sustained real GDP growth, a gradual decline in inflation following a prolonged disinflation process, and a more stable external sector. These developments, it said, are expected to improve net interest income, reduce the cost of reserve accumulation, and restore cumulative profitability over time.
It also highlighted the continued contribution of external reserves to income generation, noting that returns on reserve assets at prevailing global interest rates will support its operational capacity.
The BoG further indicated that a transition toward monetary policy easing is expected to reduce pressure on its earnings structure, with a moderation in the compression of net interest margins.
However, the Bank acknowledged concerns regarding its equity position, disclosing that negative equity widened to GH¢93 billion in 2025. It attributed this development largely to the impact of the Domestic Debt Exchange Programme and the costs associated with monetary policy operations in 2024 and 2025.
The Bank noted that the government has recognised its obligation under the Bank of Ghana Act, 2002 (Act 612), as amended, to restore its capital base. A phased recapitalisation programme has therefore been agreed between the Bank and the Ministry of Finance.
Under this arrangement, the government is expected to inject financial instruments and/or cash between 2026 and 2032 to rebuild the Bank’s capital position. The BoG indicated that these inflows are projected to restore positive equity by 2032 and re-establish a prudent level of reserves.
It added that the recapitalisation plan will enhance financial resilience, strengthen its capital base, and reduce vulnerability to short-term income fluctuations, thereby supporting the Bank’s long-term operational stability.
