Parliamentary Clash Erupts Over Bank of Ghana’s Reported GH¢15.6 Billion Loss and Rising Negative Equity

The Bank of Ghana (BoG) has become the center of a fierce political and economic debate following the release of its 2025 financial statements, which reported an operational loss of GH¢15.63 billion. This figure represents a 65% increase from the GH¢9.49 billion loss recorded in 2024, pushing the central bank’s negative equity to a staggering GH¢93.82 billion. While the Majority in Parliament defends these losses as the necessary cost of restoring macroeconomic stability, the Minority Caucus and various economic analysts have raised alarms, accusing the central bank of concealing the true scale of its financial distress and warning that the institution may be 'policy insolvent.'

Leading the charge for the Minority, Kojo Oppong Nkrumah, Ranking Member of the Economy and Development Committee, and Ralph Poku Adusei, MP for Bekwai, have contested the BoG's figures, claiming the actual loss could be as high as GH¢44 billion when accounting for gold sales and comprehensive income. They argue that the bank’s financial health is being jeopardized by government policies and have called for immediate transparency to restore public confidence. This sentiment is echoed by former Finance Minister Dr. Mohammed Amin Adam, who has formally petitioned the International Monetary Fund (IMF). Dr. Adam’s petition flags significant fiscal risks and calls for a transparent recapitalization plan, expressing concern that the bank's worsening negative equity position threatens Ghana's long-term macroeconomic gains as the country prepares to exit its current IMF program.

In contrast, the Majority in Parliament, led by Economic Committee Chairman Eric Afful and Sefwi Wiawso MP Kofi Benteh Afful, insists that the central bank’s performance should not be viewed through the lens of a commercial profit-making entity. They argue that the losses are a byproduct of aggressive monetary tightening aimed at curbing inflation—which peaked at over 54% in 2022 before dropping significantly—and stabilizing the Ghana cedi. According to the Majority, the BoG's primary mandate is macroeconomic stability rather than profitability, and current indicators, including improved foreign reserves and falling interest rates, suggest that the bank’s interventions are yielding positive results despite the accounting losses.

Beyond the halls of Parliament, the controversy has sparked heated public discourse and technical critiques. Bright Simons, Vice President of IMANI Africa, has cautioned the BoG against unsustainable foreign exchange intervention strategies, particularly its heavy reliance on gold purchases to boost reserves. Meanwhile, the government is engaging with large-scale mining companies under the Ghana National Assay and Responsible Mining Programme (GANRAP) to formalize supply channels and enhance foreign exchange stability. These efforts underscore the high stakes involved as the government seeks to navigate a path toward fiscal consolidation while managing the political fallout from the central bank’s balance sheet.

As the debate continues, the focus remains on the upcoming IMF surveillance and the potential for a formal recapitalization of the Bank of Ghana. Critics maintain that without a clear, parliamentary-approved plan to address the GH¢93.82 billion negative equity, the bank’s ability to remain an independent arbiter of monetary policy is at risk. The resolution of this financial impasse will be critical for Ghana’s economic credibility on the international stage and its domestic stability ahead of future fiscal cycles.