BoG defends 2025 losses, says policy solvency intact despite negative equity
The Bank of Ghana (BoG) has defended its financial position for 2025, insisting that despite recording a GH¢15.6 billion operating loss and a deepening negative equity position, it remains capable of executing its core monetary policy functions.
According to the central bank, it remains “policy solvent,” meaning it has the internal capacity to implement key policy measures—such as controlling inflation and managing interest rates—without relying on emergency support from government.
In its 2025 financial statements, the Bank explained that this position is underpinned by its ability to generate income from monetary policy operations, particularly open market operations used to manage liquidity, inflation, and exchange rate pressures.
The BoG noted that while current economic conditions may require continued intervention through these operations, it still has the financial capacity to sustain them internally.
It also pointed to structural improvements in its income base, as well as a planned recapitalisation programme agreed with government, as key factors supporting its medium-term outlook.
The Bank indicated that its financial performance will be closely linked to Ghana’s macroeconomic trajectory, projecting steady real GDP growth, easing inflation following a prolonged disinflation process, and a more stable external sector between 2026 and 2030.
“These conditions are expected to progressively improve the Bank’s net interest income, reduce interest expenses on reserve accumulation, and restore cumulative profitability over the forecast horizon,” the statement said.
The BoG added that returns from its external reserves will continue to support its income generation, noting that prevailing global interest rates will enhance its capacity to fund operations going forward.
It further explained that as monetary policy shifts towards an easing cycle, pressure on its earnings structure is expected to moderate, particularly in relation to net interest margins.
The Bank said its outlook is anchored on continued disinflation, improved income streams, and government-backed capital support.
On its equity position, the central bank disclosed that its negative equity widened to GH¢93 billion in 2025, largely due to the impact of the Domestic Debt Exchange Programme and recent monetary policy operations.
It noted that government has acknowledged its responsibility to restore the Bank’s capital base in line with the Bank of Ghana Act, 2002 (Act 612), as amended.
According to the BoG, a phased recapitalisation plan has been agreed with the Ministry of Finance, under which government will inject financial instruments and/or cash between 2026 and 2032 to rebuild the Bank’s capital position.
“The recapitalisation inflows are expected to result in positive net equity by 2032,” the Bank stated, adding that the programme will help restore reserves to prudent levels.
The BoG further noted that the recapitalisation initiative will strengthen its financial resilience and reduce its vulnerability to short-term income fluctuations.
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