The Bank of Ghana reported an accounting loss for 2025. This financial outcome follows significant policy actions to stabilise Ghana's economy.
The loss is a direct consequence of interventions that lowered inflation and strengthened the Ghanaian cedi. These actions have brought about the most substantial economic recovery in recent history. The central bank remains financially sound and capable of fulfilling its duties.
Ghana faced severe economic challenges three years ago. Headline inflation reached a peak of 54.1 per cent. The cedi saw a rapid decline in value. Public debt stood at 78.6 per cent of the country's Gross Domestic Product (GDP). International reserves were critically low, covering only 2.71 months of imports. By December 2025, inflation had fallen to a 30-year low of 5.4 per cent. The cedi appreciated by a significant 40.7 per cent in 2025. Gross international reserves climbed to a record $14.5 billion, sufficient for 5.85 months of import cover. GDP growth reached 6.02 per cent, with non-oil growth at an impressive 7.57 per cent in 2025. Ghana also achieved a primary fiscal surplus of 2.6 per cent of GDP. These positive changes are credits to deliberate monetary and fiscal policies implemented by the government.
The Bank of Ghana identified four main reasons for its accounting loss. These are all linked to deliberate monetary policy decisions. The first is participation in the domestic debt exchange program. This restructured government debt reduced the bank's income from its investments. This was a necessary national adjustment. The second source is the cost of open market operations. The bank paid interest to commercial banks to remove excess money from the financial system. This process helped reduce inflation from 54.1 per cent to single digits. These costs rose from GHS 8.6 billion to about GHS 16.7 billion. The third reason relates to Ghana's domestic gold program. Gold purchased locally is booked at a lower official rate than the market rate. This creates an accounting difference. The actual value of the gold held has not decreased. The fourth factor is a valuation effect. As the cedi strengthened, the value of foreign currency reserves decreased when reported in local currency. The physical assets remain unchanged in their foreign currency value. This is the opposite of a gain experienced when the cedi weakened previously.
These accounting losses do not affect the Bank of Ghana's ability to set interest rates or manage the economy. Central banks are different from commercial banks. A negative net worth does not stop them from performing their core functions. Analysts note that understanding the cost of these stabilisation efforts is crucial. It provides a complete picture of the central bank's actions and their outcomes for the nation.
The economic benefits for citizens and businesses are significant. Lower inflation means goods and services are more affordable. A stronger cedi makes imports cheaper for consumers and businesses. Higher reserves improve the country's ability to handle external shocks. The government will likely continue to focus on maintaining these gains. Future decisions will balance economic stimulus with fiscal prudence. Investors and the public will watch inflation trends and reserve levels closely.