The Bank of Ghana reported a GHS 15.3 billion loss in 2025, a significant increase from the GHS 9.4 billion loss reported in the previous year. This deep financial impairment has resulted in a negative equity position of GHS 93.82 billion by the end of 2025.
These substantial losses are primarily due to policy interventions aimed at stabilizing Ghana's challenging macroeconomic environment. The high cost of open market operations (OMO) to manage liquidity and control inflation contributed GHS 16.7 billion to these losses. Additionally, revaluation, exchange rate losses, and gold-related transactions further eroded the central bank's financial position.
This financial strain reflects the broader economic adjustments underway in Ghana, particularly the impact of the Domestic Debt Exchange Programme. The programme imposed significant losses on government securities held by the Bank of Ghana, directly weakening its balance sheet. This central bank's financial position mirrors the national effort to restore fiscal sustainability.
Professor of Finance, Williams Kwasi Peprah of Andrews University, USA, highlighted this situation. He stated, “The Bank of Ghana’s 2025 financial statements present a striking paradox; one that would appear alarming in any conventional financial institution but is, in the context of central banking, more nuanced.” He noted that the central bank, despite financial pressures, continues to function with operational stability.
In response to these challenges, a government-backed recapitalization plan is set to run from 2026 to 2032. This plan aims to inject capital into the Bank of Ghana in phases, restoring positive equity and strengthening financial resilience. Market participants and policymakers will closely monitor the effective implementation of this recapitalization plan.
Despite the negative equity, the Bank of Ghana has maintained operational stability. It generated strong operating income from interest earnings, fees, commissions, and significant gains from refined gold sales. The Domestic Gold Purchase Programme has proven to be a strategic tool, boosting reserves and generating income. The Bank's policy solvency, its ability to cover monetary operations costs from its income, remained positive in 2025.
The central bank also reported strong operating cash flows and increased cash balances with correspondent banks. This liquidity buffer provides flexibility to respond to market pressures. The outlook includes expectations of declining inflation and easing policy rates, which should moderate the cost of monetary operations. Improvements in the external sector and continued income growth are anticipated to support a gradual return to profitability for the Bank of Ghana.
The success of the recapitalization initiative is crucial for long-term recovery. Delays in this plan could prolong the central bank's weakened state. Effective implementation, however, could accelerate recovery and enhance the institution's credibility. The evolving macroeconomic conditions will heavily influence the path forward for the Bank of Ghana.