Bank of Ghana Reports GHS 15.6 Billion Loss in 2025 Amid Economic Stabilisation
Central bank's financial setback seen as necessary cost for curbing inflation and strengthening cedi.
Sharif Mahamud Khalid | StatsGH |
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These stabilisation efforts were crucial. They helped restore confidence in Ghana's financial system. This included bringing down high inflation and making the national currency, the cedi, stronger. Central banks focus on economic stability, not making profits like regular businesses. They aim to keep money prices steady, control inflation, and protect national reserves. These important jobs often come with significant costs.
The Ghanaian economy showed strong signs of recovery by the end of 2025. Inflation dropped from 23.8% in 2024 to 5.4% in 2025. The Ghanaian cedi became much stronger against the US dollar. National foreign currency savings, called gross international reserves, grew from US$9.1 billion to US$13.8 billion. The amount of time these reserves could pay for imports also improved to about 5.7 months.
The primary reasons for the Bank of Ghana's loss were three main factors. These were the costs of 'open market operations' (OMO), the value changes of assets due to exchange rates, and losses from dealing with gold reserves. Open market operations involve the central bank buying or selling government bonds to control the amount of money in circulation. This is a key tool to fight inflation. When the bank absorbs money, it has to pay interest, which creates costs. These actions, though costly, were vital for the economic turnaround.
For instance, the cost of open market operations alone increased from GHS 8.6 billion in 2024 to GHS 16.7 billion in 2025. This happened because the bank needed to remove excess money from the economy to lower inflation. It paid commercial banks to hold special instruments that soaked up this extra cash. This is a recognized global practice. The European Central Bank and the US Federal Reserve have also reported losses linked to similar efforts to control inflation and manage interest rates.
The strengthening of the cedi also created an accounting challenge. When the cedi becomes stronger, the value of foreign currency reserves when converted back into cedis appears lower. This results in what is called 'revaluation losses,' even though the actual amount of foreign currency held increased. Critics often confuse these accounting losses with actual operational losses, overlooking the positive economic outcomes.
The improved economic indicators reflect a deliberate and sometimes expensive monetary policy. Without these interventions, inflation could have stayed high, weakening the cedi further and prolonging economic instability. The Bank of Ghana's actions are seen as the necessary financial price for restoring economic credibility. Experts highlight that international accounting standards treat these valuation changes differently from operational losses. The Bank of Ghana Act also distinguishes these items.
Looking ahead, policymakers and markets will watch how the bank manages its balance sheet. The focus will be on maintaining the hard-won economic stability. Continued vigilance against inflationary pressures remains key. The central bank's ability to navigate these financial costs while supporting growth will be crucial for Ghana's economic future.