GH¢80 BILLION BoG LOSSES YET NO CONCRETE ECONOMIC STABILITY - NDC MAJORITY FIRES NPP PAST GOVERNMENT

At a press briefing in parliament on May 6, 2026, Hon.Eric Afful, Chairman of the Parliamentary Committee on Economy and Development, led the Majority caucus (NDC) in defending the Bank of Ghana’s (BoG) 2025 financial performance. 

He fires back at the NPP party that in their past government even with GH¢80 billion BoG losses yet they couldn't achieve any concrete economic stability in their past governance.
Hon. Eric Afful argued that the recorded losses were a "necessary medicine" to stabilize an economy in severe crisis. Adding  there is a historical context to the losses posted by Bank of Ghana in 2025, stating the central bank lost cumulative amount of GHC80.8bn between year 2022 and year 2024.

He further added as the Majority side of the Committee on Economy and Development, they 
consider it necessary, in the interest of transparency and informed public
discourse, to place these results within their proper economic and policy
context.
The legislator further clarifies that at face value, the Bank reported a net loss of GH¢15.6
billion in 2025, an Other Comprehensive Income (OCI) charge of GH¢19.32
billion, and a negative equity position of GH¢96.3 billion. While these figures
are significant, they must not be interpreted through the narrow lens of
commercial banking. Central banking is fundamentally a public policy function,
and its financial outcomes often reflect the cost of stabilizing the economy.

Ghana’s recent history.
Inflation surged to a peak of 54.1 percent in 2022 before declining to 23.8
percent by the end of 2024. The Ghana cedi experienced significant
depreciation, reaching approximately GH¢17 to the US dollar by December
2024, representing a depreciation of about 19.7 percent. Gross International
Reserves stood at about US$9.3 billion in 2024, covering roughly 4 months of
import of goods and services.
At the same time, the Bank’s equity position weakened.

The majority side of Parliament added hiven this consideration, the 2025 financial outcome must be understood as
the continuation of deliberate and necessary policy interventions. 
In 2025, the
Bank’s balance sheet reflected a debt position of about GH¢96 billion.
However, macroeconomic indicators show a strong and decisive turnaround.
Inflation declined sharply to 5.4 percent by the end of 2025 and further to 3.2
percent by March 2026. The Ghana cedi appreciated significantly by about
40.7 percent against the US dollar, reversing prior instability.
Gross International Reserves increased substantially to approximately US$13
billion, providing about 5.7 months of import cover. Importantly, under the
Ghana Accelerated National Reserves Accumulation Programme (GANRAP)
for 2026–2028, reserves are projected to reach up to 15 months of import
cover, significantly strengthening Ghana’s external buffers.
Economic growth also strengthened, with GDP expanding by about 6.0 percent
in 2025 and non-oil GDP growth reaching 7.8 percent. The size of the economy
increased to approximately US$113 billion, with per capita income rising to
about US$3,193.
These improvements did not occur by chance. They are the direct outcome of
policy measures undertaken by the Bank of Ghana. For instance, the Domestic
Debt Exchange Programme (DDEP) reduced interest income on government
securities, leading to an estimated shortfall of about GH¢13 billion in 2025.
While this policy contributed to financial losses, it was essential for restoring
debt sustainability. We also acknowledge the significant burden the
programme placed on bondholders, particularly retirees.
Additionally, the Bank undertook aggressive Open Market Operations to
control inflation, incurring interest costs of about GH¢16.7 billion. These were
deliberate interventions aimed at absorbing excess liquidity and restoring
monetary stability.
The appreciation of the cedi, while positive for the economy, resulted in
accounting valuation losses on foreign assets, reflected as OCI charges.
Similarly, the gold accumulation programme, which strengthens reserves and
reduces foreign exchange dependence, generated accounting charges of about GH¢9 billion, despite its strong long-term benefits.

The NDC in parliament emphasized that these financial outcomes do not
impair the operational capacity of the Bank of Ghana. 
The Bank continues to
effectively deliver on its core mandate: ensuring price stability, maintaining
financial system stability, managing the national currency, and safeguarding
reserves.
Negative equity in central banking is an accounting condition and does not
imply insolvency. Central banks are not profit-maximizing institutions rather,
they are stabilizing institutions. Simply put, the Bank’s balance sheet reflects
the cost of stabilizing the economy during a period of severe economic
distress.
Indeed, global experience shows that major central banks, including the
European Central Bank, the United States Federal Reserve, and the Reserve.

Furthermore, Government’s commitment to recapitalizing the Bank under the
appropriate legal framework will strengthen its balance sheet over the
medium term.
In view of this, the 2025 financial results of the Bank must be understood for
what they truly represent but not seen as a failure, but the cost of restoring
stability, rebuilding confidence, and securing the future of the Ghanaian
economy.
 
The majority on the economic committee in parliament therefore commend the BOG for its decisive policy actions during the
period of extraordinary economic stress and also urge the public, analysts and stakeholders to interpret central bank financial statements within their
proper policy context, focusing not only on accounting outcomes but also on
the broader macroeconomic results.

In pledging their commitment, Hon. Afful reiterated their side of the Committee remain committed to their oversight
responsibility and will continue to engage the Bank and other stakeholders to
ensure sustained economic stability, transparency, and accountability in the
management of Ghana’s economy.