BoG Defends Financial Position Despite GH¢15.6bn Loss and Negative Equity
Central bank insists it remains “policy solvent” and capable of managing inflation and interest rates
- BoG reports GH¢15.6bn operating loss but says it can still execute key monetary policies.
- Negative equity deepens to GH¢93bn, largely due to debt exchange programme and policy operations.
- Government-backed recapitalisation plan aims to restore positive equity by 2032.
The Bank of Ghana (BoG) has defended its financial health, stating that it remains capable of executing its core monetary policy responsibilities despite recording a GH¢15.6 billion operating loss and a negative equity position in 2025.
According to the Central Bank, it is still “policy solvent,” meaning it can effectively carry out key functions such as controlling inflation and managing interest rates without requiring emergency government support.
In its 2025 financial statement, the BoG explained that its position is backed by its ability to generate income through monetary policy tools, particularly open market operations used to regulate liquidity, inflation, and exchange rate pressures.
The Bank noted that ongoing economic conditions will demand continued interventions, but emphasised that it has the internal capacity to fund these activities. It added that structural improvements in its income streams, along with a recapitalisation agreement with the government, support its medium-term outlook.
Looking ahead, the BoG projects that between 2026 and 2030, Ghana’s economy will experience steady GDP growth, declining inflation, and a more stable external sector. These developments are expected to gradually improve its financial performance, boost net interest income, and restore profitability over time.
It also highlighted that returns from external reserves will continue to contribute to income, while a shift towards a more accommodative monetary policy is expected to ease pressure on its earnings.
On its equity position, the Bank disclosed that its negative equity widened to GH¢93 billion in 2025, largely due to the Domestic Debt Exchange Programme and recent monetary policy operations.
The BoG noted that the government has acknowledged its responsibility to restore the Bank’s capital under existing law, and both parties have agreed on a phased recapitalisation plan.
Under this arrangement, the government will inject financial instruments and/or cash between 2026 and 2032, with the goal of returning the Bank to positive equity by 2032 and rebuilding its reserves to a stable level.
The Bank believes this plan will enhance its financial resilience and reduce vulnerability to short-term income fluctuations going forward.
