The International Monetary Fund (IMF) has defended the Bank of Ghana (BoG)’s significant financial losses. The IMF stated that the BoG's forceful policy actions were necessary to stabilize Ghana's economy during its crisis period. The central bank recorded a GHS 15.6 billion loss in 2025, a sharp increase from GHS 9.49 billion in 2024.
These substantial losses contributed to a worsening of the central bank's negative equity position. The BoG's negative equity reached GHS 93.82 billion, up from GHS 58.62 billion. These deficits are largely attributed to the high costs associated with soaking up excess money from the system and strict monetary policies designed to control inflation and stabilize the national currency, the cedi.
This financial situation fits into Ghana's broader economic recovery narrative, strongly influenced by an ongoing IMF programme. The country has been navigating high inflation and exchange rate instability. The central bank's role in implementing aggressive monetary tightening has been central to these efforts. Ghana aims to rebuild investor confidence and achieve sustainable economic growth.
IMF Mission Chief Ruben Atoyan spoke on the matter, rejecting any claims that the Bank of Ghana was overly aggressive in its approach. “I would disagree with this view that the Bank of Ghana was too aggressive,” Mr. Atoyan stated. He added, “I think it was very prudent, and the achievement is, I think, manifested in the outcomes, and I think people on the ground actually recognise that.”
Mr. Atoyan emphasized that the public must understand the inherent costs of conducting monetary policy, especially in challenging economic times. He explained that absorbing liquidity from the market becomes very expensive when inflation and interest rates are high. This process is reflected transparently in the Bank of Ghana's 2025 financial statements. The difficult economic situation made the Bank of Ghana's interventions costly but unavoidable.
The IMF's consistent backing of Ghana's tight monetary policy highlights its view on economic stabilization. Strong control over inflation and a stable exchange rate are considered vital for restoring trust from investors. These factors are also crucial for sustaining long-term economic growth. The central bank's financial health, while appearing distressed, is seen as a consequence of necessary actions.
The implications of these statements are significant for Ghana's economic future and public perception. Decisions makers will need to balance the need for economic stability with the financial health of key institutions. Markets will closely watch how these statements affect domestic and international confidence in Ghana's recovery plan. The Bank of Ghana's role in managing these severe financial costs will remain a key point of discussion.