The International Monetary Fund (IMF) has strongly defended the Bank of Ghana's recent monetary policy actions. IMF Mission Chief Ruben Atoyan stated that Ghana's central bank acted prudently despite its 2025 financial statements showing operational losses.
Mr. Atoyan, speaking on PM Express Business Edition, rejected suggestions that the Bank of Ghana had been overly aggressive in its efforts to stabilise the economy. He stressed that the central bank's strategy was cautious and achieved positive outcomes visible to the public. These comments address ongoing public debate regarding the Bank of Ghana's financial losses and the wider costs of its inflation-fighting measures.
This steadfast backing from the IMF aligns with Ghana's ongoing Extended Credit Facility programme, which aims to restore macroeconomic stability. The program seeks to improve inflation, stabilise the exchange rate, and enhance fiscal performance. The Bank of Ghana's policies are central to these goals, despite the financial burden they impose on the institution. Ghana has experienced significant economic challenges in recent years, including high inflation and currency depreciation, making the central bank's actions crucial for recovery.
IMF Mission Chief Ruben Atoyan highlighted that central banks often incur substantial costs when managing inflation and stabilising financial systems during economic crises. He explained, "The Bank of Ghana 2025 financial statement was just published, and it transparently presents the cost of doing business with high inflation and high interest rates." Absorbing excess liquidity from the market, a key policy tool used by the central bank, is an expensive but necessary operation, he added. This process removes money from circulation, helping to cool down an overheating economy and bring down inflation. These statements reinforce the IMF's confidence in Ghana's economic management team.
The financial statements for 2025 clearly show the impact of managing high inflation and elevated interest rates. While these measures led to losses for the central bank, Mr. Atoyan affirmed they were justified by the need to restore macroeconomic stability. He stated, "It did generate some costs for the Bank of Ghana, but it was a necessary cost for the stabilisation going forward." The central banking role is not primarily profit-driven but rather focused on maintaining price stability and financial sector health. This perspective helps explain why such operational losses are sometimes an unavoidable consequence of effective monetary policy.
The IMF's consistent praise for Ghana's economic recovery efforts under the Extended Credit Facility demonstrates international confidence. This endorsement strengthens the Bank of Ghana's policy direction amidst domestic concerns about the financial implications. Decision-makers and markets will closely watch how these policies continue to unfold. The focus remains on sustainable economic stabilisation and balancing growth with inflationary control. Continued support from international partners like the IMF is vital for sustaining Ghana's recovery trajectory.