The Bank of Ghana's negative equity position of GHS 96.3 billion does not mean it cannot fulfill its duties, according to Attah Issah, a Member of Parliament and member of the Finance Committee. He stated that the central bank's core function is to maintain economic stability, not to generate profits for itself.
This clarification addresses concerns raised by the substantial negative equity figure. The Bank of Ghana's mandate, as outlined in Section 9 of its regulations, focuses on price stabilization, reserve management, and overall economic stability. These objectives have been met, despite the accounting losses incurred. Mr. Issah highlighted that the reported negative equity is a cumulative sum accumulated over time.
The GHS 96.3 billion figure is a result of losses from previous periods and new ones in the current year. At the end of 2024, negative equity stood at GHS 61.3 billion. An additional GHS 35 billion was added in the current year from total losses and other comprehensive income, bringing the cumulative figure to GHS 96.3 billion. This total reflects an accumulation over multiple years according to published data.
Mr. Issah explained that significant policy actions undertaken to stabilize Ghana's economy led to these financial costs. High costs from Open Market Operations were necessary to control inflation and bring it within the target band of 8% to 10%, a goal that has been achieved. Efforts to stabilize the Ghanaian cedi and increase foreign exchange reserves from GHS 9.1 billion to GHS 13.35 billion also contributed to the expenses.
Looking ahead, measures are being implemented to ease pressure on the Bank's balance sheet. A reserve accumulation program initiated in February 2026 reclassifies gold-related transaction costs. These costs will now be borne by off-takers, not the Bank of Ghana, freeing up reserves. The reduction in inflation is expected to lower the expenses related to tight monetary policy. Furthermore, the recent stability in the exchange rate should limit future losses associated with currency fluctuations.
Mr. Issah pointed out that negative equity is not uncommon among global central banks. Institutions like the European Bank and the Federal Reserve Bank of America have also experienced negative equity without compromising their policy effectiveness. He expressed confidence that ongoing policies, such as the Ghana Revenue Acceleration and Accumulation Policy, will prevent such debts from appearing on the Bank of Ghana's books in the future. These policies aim to improve the bank's financial health and operational resilience.