Dr. John Kwakye, an Economist and Director of Research at the Institute of Economic Affairs, has raised a key question regarding the Bank of Ghana’s financial health.
He questioned how, if the BoG only recorded a “technical loss” of GHS 60 billion in 2022, as suggested by the Bank and the then Finance Minister, Ken Ofori-Atta, the IMF is now calling for its urgent recapitalization.
Dr. Kwakye emphasized that the BoG is struggling to meet its basic operational and administrative obligations, which raises serious concerns about the Bank’s overall financial stability.
He highlighted the disconnect between the reported losses and the true extent of the Bank’s financial challenges.
“BoG’s loss of GHS60 bn in 2022, which the Bank and Mr. Ofori-Atta wrongly described as ‘only a technical loss’ has severely eroded its financial position, making it difficult to meet its operational and administrative responsibilities”.
Dr. John Kwakye
Dr. Kwakye further emphasized that the Bank of Ghana must be held more accountable for effectively delivering on its mandates related to inflation and exchange rate management.
He highlighted the critical importance of the Bank’s efforts to maintain the exchange rate below 15, urging the need for careful consideration of its reserve levels.
Dr. Kwakye pointed out that while these efforts are essential for stabilizing the economy, they should not come at the cost of depleting the Bank’s reserves, which are crucial for ensuring long-term monetary stability and supporting economic growth.

He indicated that stabilizing prices and the exchange rate is fundamentally practical economics, emphasizing that it is not an overly complex task.
The astute economist also urged the government to prioritize these issues, stressing the importance of working diligently to achieve economic stability for the benefit of citizens.
According to him, with focused effort and sound policy, the government can address these challenges effectively and improve the lives of the people.
Monetary Policy Reset Urged Amid Economic Challenges
Furthermore, Dr. John Kwakye asserted that monetary policy must be re-evaluated and reset as the year concludes with inflation at 23%, a policy rate of 27%, and a depreciation of 20%.
He pointed out that these figures highlight a significant failure of the current monetary policy.
According to him, the combination of high inflation, an elevated policy rate, and substantial depreciation reflects the inability of existing measures to stabilize the economy effectively.

Dr. Kwakye emphasized that a reset is necessary to address these challenges and establish a more effective approach for the coming year.
“The top priority of the new government should be to address the high cost of living to dampen the deep disenchantment among Ghanaians. The way to bring down the unbearable high cost of living is to address urgently the key causes–food, energy, and the exchange rate. BoG’s concentration on managing demand is counterproductive”.
Dr. John Kwakye
He also pointed out that the exchange rate has risen from 4.2 in 2016 to 17, only to be brought down to 14 by depleting the Bank of Ghana’s reserves.
Additionally, inflation has surged from 15.4% in 2016 to a staggering 54%, with efforts to reduce it to 23% by raising the Policy Rate to as high as 30%.
He questioned whether these developments should truly be considered achievements, as is being suggested.
He indicated that instead, these figures reflect a series of challenges that have yet to be effectively addressed, raising concerns about the long-term sustainability of such measures.
Meanwhile, Dr. Kwakye also criticized the Bank of Ghana’s justification for revoking the licenses of UT and Capital Banks, claiming it was merely an IMF requirement.
He questioned whether the Ghanaian authorities explored alternative strategies or simply accepted the IMF’s directive without considering other options.
According to him, this raises concerns about the depth of local decision-making and the broader implications of following external mandates without exploring viable alternatives.
READ ALSO: UN Chief Urges Global Community To Make 2025 A New Beginning