No crisis at BoG despite negative equity -Bank assures nation

Bank of Ghana (BoG) dismissed concerns over its financial position, stating that its 2025 losses and negative equity do not signal institutional distress. The BoG maintained that its financial results should be interpreted within the context of its policy mandate, rather than as a measure of commercial performance. The Bank stated, "They do not represent a cash loss, a depletion of reserves, nor a sign of institutional distress," addressing concerns about the reported operating loss of GH¢15.63 billion and an additional GH¢19.32 billion loss recorded under Other Comprehensive Income.

The combined effect of these losses pushed the Bank's negative equity position from GH¢61.32 billion at the beginning of 2025 to GH¢96.28 billion by year-end. The BoG stressed that negative equity does not carry the same implications for a central bank, as it would for a private sector institution, and "does not impair the Bank's capacity to conduct monetary policy." The losses recorded in 2025 primarily reflect the financial cost of aggressive monetary policy actions aimed at stabilising Ghana's economy. Inflation declined from 23.8 percent at the end of 2024 to 5.4 percent by December 2025, while the cedi appreciated by over 40 percent against the US dollar. Gross international reserves also rose from $9.11 billion to $13.83 billion over the same period.

The BoG expressed confidence that its financial position would improve as macroeconomic conditions stabilise. The cost of open market operations is expected to decline as inflation eases and interest rates normalise. The Bank also pointed to ongoing discussions with government on a recapitalisation plan, as well as structural reforms such as the transition to the Ghana Accelerated