The Bank of Ghana has stated that it is working to recover the ¢60 billion loss it incurred in 2022 as a result of the Domestic Debt Exchange Programme (DDEP).

According to the Head of Financial Stability Services, Dr. Joseph France, the Central Bank has a track record of maintaining and ensuring financial prudence, hence the recent loss cannot be used as a measure to question the sanity and credibility of the bank.

Speaking to Joy Business during a sensitisation programme for some officers of the Customs Division of the Ghana Revenue Authority, Dr. France said the Bank of Ghana remains committed towards ensuring a safe and sound financial system in the country.

“It’s a one-off thing, if you look at it. I don’t think this will affect the credibility of the Central Bank because it’s a one-off transactions and those are being addressed. In an economy like ours, you need to do much to get things running. The Central Bank is doing much to getting the system, running”.

The Bank of Ghana recorded a loss of ¢60.8 billion in 2022. The Central Bank’s record loss is coming after it posted a ¢1.2 billion profit in 2021.

Its Annual Report and Financial Statement attributed the loss to a decline in the group’s net worth position due to the impact of the Domestic Debt Exchange Programme (DDEP) and impairment of some assets.

Again, its total liabilities and subsidiaries exceeded its total assets by ¢54.52 billion.

Reasons behind loss position

This was due to the impairment of the Government of Ghana securities holdings of ¢48.45 billion, impairment of loans and advances granted to quasi-government and financial institutions amounting to ¢6.12 billion and the depreciation of the local currency resulting in net exchange loss of ¢5.27 billion.

It was occasioned by the Government of Ghana Domestic Debt Exchange Programme.