The Bank of Ghana (BoG) has defended its financial position for 2025, saying that despite posting a GH¢15.6 billion operating loss and negative equity, it is still able to carry out its core role of managing monetary policy.
The Bank explained that it remains “policy solvent,” meaning it can still implement key functions such as controlling inflation and guiding interest rates without needing emergency government support.
According to its 2025 financial statement, this is possible because it continues to generate income from monetary policy tools like open market operations, which help manage liquidity, inflation, and exchange rate pressures.
BoG said that although economic conditions will require continued intervention, it still has enough internal capacity to fund these operations.
It added that improvements in its income structure and a planned recapitalisation programme with government support its financial outlook.
The Bank noted that “its financial performance over the medium term is assessed against Ghana’s macroeconomic trajectory.”
Looking ahead, BoG expects stronger economic conditions between 2026 and 2030, including steady GDP growth, lower inflation, and a more stable external sector.
It said these developments should gradually improve its finances.
“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,” it stated.
The Bank also said earnings from its external reserves will continue to support income.
“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 said.
It added that when monetary policy shifts towards easing, pressure on earnings will reduce.
“As the monetary policy cycle transitions to an easing phase, the compression in the net interest margin… is expected to moderate,” the statement noted.
BoG said its outlook is based on improving inflation trends, better income structure, and government-backed recapitalisation.
The Bank disclosed that its negative equity widened to GH¢93 billion in 2025, mainly due to the Domestic Debt Exchange Programme and monetary policy operations in 2024 and 2025.
It said government has acknowledged its legal responsibility to restore its capital base under the Bank of Ghana Act, 2002 (Act 612), as amended.
“A phased recapitalisation programme has been agreed between the Bank and the Ministry of Finance,” it stated.
Under the plan, government will provide cash or 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 said, adding that this will help restore adequate financial buffers.
It further noted that the plan will improve financial resilience and reduce exposure to short-term earnings shocks.
“The proposed recapitalisation plan will further strengthen the Bank’s financial resilience by augmenting its capital base,” it stated.
