The Bank of Ghana has defended its financial position for 2025, insisting it remains fully capable of executing its core monetary policy mandate despite recording a GH¢15.6 billion operating loss and deepening negative equity.
In its latest financial statement, the central bank stressed that it is still “policy solvent,” meaning it can continue to manage inflation, interest rates, and liquidity conditions without requiring emergency government support.
According to the Bank, its ability to generate income from monetary policy operations—particularly open market operations—provides sufficient internal resources to sustain its activities, even amid ongoing economic pressures.
The Bank remains policy solvent and capable of implementing its core mandate without reliance on emergency government support,” it said.
It added that, “its ability to generate sufficient income from monetary policy operations… underpins its capacity to finance ongoing interventions.”
The Bank noted that structural improvements in its income base, coupled with a recapitalisation agreement with government, will support its financial recovery over the medium term.
Looking ahead, it projected a more stable macroeconomic environment between 2026 and 2030, characterised by sustained economic growth, easing inflation, and a stronger external sector.
These conditions… are expected to progressively improve the Bank’s net interest income, reduce interest expense on reserve accumulation, and restore cumulative profitability over the forecast horizon,” the statement said.
The Bank also highlighted continued income from external reserves as a key buffer.
As the external reserve portfolio continues to generate returns at prevailing global interest rate levels, its ability to run its operations should not be a challenge at all going forward,” it stated.
Additionally, it indicated that an expected shift toward monetary policy easing would help ease pressure on its earnings.
As the monetary policy cycle transitions to an easing phase, the compression in the net interest margin… is expected to moderate,” the Bank noted.
Negative Equity and Recapitalisation Plan
The Bank disclosed that its negative equity widened to GH¢93 billion in 2025, largely due to the impact of the Domestic Debt Exchange Programme and costs associated with monetary policy operations over the past two years.
However, it emphasised that the government has committed to restoring its capital base under the Bank of Ghana Act, 2002 (Act 612).
A phased recapitalisation programme has been agreed between the Bank and the Ministry of Finance,” it said.
Under the arrangement, the government is expected to inject funds and financial instruments between 2026 and 2032 to rebuild the Bank’s capital position.
The recapitalisation inflows… are expected to result in positive net equity by 2032,” the Bank explained, adding that the plan will help restore adequate reserves and strengthen its financial resilience.
It concluded that the programme would reduce the Bank’s exposure to short-term financial pressures while reinforcing its ability to support Ghana’s economic stability.
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