Fresh financial disclosures from the Bank of Ghana have sent shockwaves across Ghana’s financial and investment circles after the central bank reported a staggering negative equity position of GH¢93.82 billion for the 2025 financial year.
The alarming figure, captured in the Bank’s latest audited financial statements, marks a sharp deterioration from the GH¢58.62 billion negative equity recorded in 2024. At the same time, the Bank posted an operating loss of GH¢15.6 billion, compared to GH¢9.4 billion a year earlier, signaling one of the most challenging financial periods in the institution’s recent history.
The report has sparked intense discussions among economists, investors, and policy observers, with many questioning what exactly pushed the central bank deeper into financial strain and what it means for Ghana’s economic future.
Financial Pressure Mounts at the Central Bank
Although the Bank of Ghana remains the institution responsible for maintaining price stability, regulating the banking sector, and safeguarding the nation’s monetary system, its latest financial performance reveals the enormous cost of performing these responsibilities in a difficult economic climate.
According to the audited report, the Bank’s total assets rose from GH¢215 billion in 2024 to GH¢237 billion in 2025. However, liabilities expanded much faster, jumping from GH¢276 billion to GH¢333 billion.
This widening gap between assets and liabilities is what pushed the central bank’s negative equity to its current record level.
For market analysts, the figures suggest that while the Bank continues to operate and support the economy, the cost of intervention is becoming increasingly expensive.
Monetary Operations Trigger Massive Losses
One of the biggest contributors to the Bank’s worsening financial condition was the sharp increase in the cost of monetary policy operations.
Open Market Operations, which the central bank uses to manage money supply and control inflation, surged by about 95 percent in 2025 to GH¢16.7 billion.
Sterilisation liabilities to commercial banks also rose sharply, increasing by 186 percent to GH¢93.6 billion. Money market liabilities climbed further to GH¢93.8 billion.
These figures show that the Bank spent significantly more resources trying to maintain financial stability, manage excess liquidity, and support its inflation-fighting efforts.
While these interventions are critical for economic management, they have come at a heavy financial cost.
Domestic Debt Exchange Continues to Hurt
The impact of Ghana’s Domestic Debt Exchange Programme also continued to weigh heavily on the central bank’s books.
The Bank disclosed that the restructuring of government securities significantly reduced the returns it would have normally earned on its investments.
As a result, the central bank estimates that forgone interest income in 2025 exceeded GH¢12 billion.
This sharp decline in investment income added another layer of pressure to the institution’s already stretched balance sheet.
The debt exchange may have helped Ghana address broader fiscal challenges, but for institutions holding large volumes of government securities, the pain remains significant.
Stronger Cedi Creates Unexpected Setback
In a surprising twist, the strengthening of the Ghana cedi also contributed to the Bank’s losses.
The local currency appreciated by nearly 40 percent during the year, leading to a massive revaluation loss of GH¢23.6 billion on gold reserves, Special Drawing Rights, and foreign securities held by the Bank.
Combined with accounting adjustments linked to gold disposals, the Bank recorded a total Other Comprehensive Income loss of GH¢19.9 billion, reversing the gains recorded in 2024.
Even though the disposal of some gold reserves generated gains of GH¢9.57 billion, it was not enough to fully offset the broader losses.
The development highlights how even positive macroeconomic indicators can sometimes create accounting pressures for central banks managing large foreign asset portfolios.
KPMG Maintains Confidence
Despite the eye catching numbers, audit firm KPMG has maintained that the Bank remains operational and capable of fulfilling its policy mandate.
According to the auditors, the Bank’s financial statements were prepared on a going concern basis, meaning management believes the institution has the capacity to continue operating effectively despite the losses.
KPMG also noted that improving macroeconomic conditions, declining inflation, and lower interest rates could significantly reduce the cost of monetary interventions in the coming years.
This assessment provides some reassurance to investors, banks, and businesses monitoring the health of Ghana’s financial system.
Recovery Plans for 2026 and Beyond
Meanwhile, the Bank of Ghana says it does not expect a repeat of the 2025 losses.
Management believes tighter monetary conditions, improved banking sector liquidity, and falling inflation could ease the pressure on its operations.
The Bank also revealed that the government has agreed to a phased recapitalisation plan running from 2026 to 2032, aimed at restoring the central bank’s equity position and strengthening its long term financial sustainability.
Still, external risks remain. Rising global oil prices, geopolitical tensions, and tighter global financing conditions could create fresh economic challenges.
In the intervening time, all eyes remain on Ghana’s central bank as it navigates one of the toughest financial chapters in its history while working to restore confidence and preserve economic stability.
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