Bank of Ghana Reports Staggering $1.25 Billion Loss for 2025 Amid Rising Monetary Policy Costs

The Bank of Ghana (BoG) has released its 2025 audited financial statements, revealing a significant net loss of GH₵15.63 billion (approximately $1.25 billion). This figure represents a sharp increase from the GH₵9.48 billion loss recorded in 2024. The central bank's cumulative negative equity has now ballooned to approximately $9 billion, or roughly 8% of Ghana's GDP—one of the highest such ratios for a central bank globally. Despite these staggering losses, the BoG reported record-high foreign reserves of $13.8 billion, illustrating a complex financial position where policy objectives for economic stability have come at a heavy fiscal price.

The primary drivers of these losses include high sterilization costs and expenses associated with the Domestic Gold Purchase Program (DGPP). According to BoG officials, about 83% of DGPP costs arise from exchange rate discrepancies; gold is purchased from small-scale miners at higher forex bureau rates to encourage formal trade but recorded at the Bank's lower official rate. This fiscal burden was further exacerbated by the cedi's appreciation in 2025. Additionally, the bank incurred significant interest payments on open market operations intended to mop up excess liquidity and curb inflation. While total operating income rose to GH₵22.23 billion, these gains were ultimately eclipsed by the rising costs of maintaining monetary stability.

The financial results have sparked a heated debate among economic analysts and political figures. Joe Jackson, CEO of Dalex Finance, questioned the sustainability of the model, specifically criticizing the losses in gold trading, which he argued should typically serve as a safe-haven asset. Conversely, Professor Peter Quartey and Dr. Michael Ayamga-Adongo have defended the central bank, commending its transparency and noting that a central bank's primary mandate is price and economic stability rather than profit maximization. Meanwhile, the Minority in Parliament has labeled the results a "policy failure," scheduling a press conference to address what they describe as a "gargantuan loss" that lacks the justification of a formal financial crisis.

Looking ahead, the Bank of Ghana Board maintains that it can continue to fund core operations without government support, projecting a return to profitability between 2026 and 2030. This optimism is supported by strategic shifts in the mining sector, such as the Damang Gold Mine’s commitment to sell 100% of its output to the Ghana Gold Board, a move expected to further bolster national reserves and stabilize the cedi. However, the path to recovery remains tied to a phased recapitalization plan and the government's ability to maintain fiscal discipline. As Ghana navigates this delicate balance, the central bank's ability to manage inflation without further eroding its equity remains a critical test for the nation's economic resilience.