Audio By Carbonatix
Inflation is easing. The currency is holding. On the surface, things feel better. But beneath that calm, the central bank is carrying negative equity. So the question is simple: should we worry, or should we accept it?
Let’s keep it practical.
Imagine a business that needs $41,000 every year. In 2024, it pays nearly GHS 700,000. In 2025, for the same amount, it pays around GHS 450,000. In 2026, about GHS 490,000. Nothing about the dollar amount has changed. What changed is stability.
That difference is not just numbers on paper. It is cash saved. It is inventory restocked. It is salaries paid on time. It is a business staying alive instead of struggling.
This is why falling inflation and a stable exchange rate matter more than anything else to the real economy. People do not trade in theories. They trade in certainty.
So yes, if stability comes at the cost of central bank losses, many would say it is worth it in the short term. The economy needs breathing room. Businesses need predictability. Households need relief.
But here is the part we must not ignore.
Negative equity means the central bank has taken a financial hit to achieve this calm. It is not free. It is a cost pushed into the system. If not managed carefully, that cost can come back later as inflation, higher taxes, or reduced confidence.
It also raises a deeper issue. A weak central bank balance sheet can limit how much it can respond in the next crisis. It can invite pressure from government. It can quietly weaken trust, which is the most important tool any central bank has.
So the answer is not panic. And it is not a celebration either.
Short-term stability is good. It is necessary. But it must be backed by long-term repair. The central bank must rebuild its strength. Discipline must hold. Independence must be protected.
Because stability that cannot last is just a pause.
And economies cannot afford too many pauses.
Latest Stories
-
Government brings home remains of Ghanaian killed in alleged South Africa mob attack
1 minute -
41 more Ghanaians return home from South Africa after xenophobic attacks
4 minutes -
GH¢70,000 gift allegation gives Parliament chance to clean up vetting process – Dr Dramani
5 minutes -
Ghana will be present at Prof Arday’s funeral to pay our respects – Ablakwa
6 minutes -
CJ must avoid appearing as government ‘cheerleader’ – Prof Boadi
9 minutes -
ATU launches HND in Paramedical Trichology to formalise hair and scalp care training
10 minutes -
Health HR practitioners charged to lead sector transformation at 2nd Annual AHRMPHG conference
11 minutes -
NCCE steps up efforts to consolidate nation’s democratic gains
12 minutes -
Government raises GH¢3.15bn in 4-year bond at 12%
23 minutes -
Ampem Darkoa Ladies set sight on CAF Champions League return with Edo Queens the hurdle
38 minutes -
Government unveils five-pillar plan to build resilient economy
39 minutes -
GJA opens entries for 30th Media Awards, introduces 2 new categories
45 minutes -
Ghanaian winger Ibrahim Sadiq joins Colorado Rapids in MLS
57 minutes -
Sister Love by Naina J.M.D. draws international praise ahead of October release
59 minutes -
Ghana Gas CEO calls for more investment in gas infrastructure
1 hour