The Bank of Ghana (BoG) has defended its financial position for 2025, insisting that despite recording a GH¢15.6 billion operating loss and negative equity, it remains capable of delivering on its core monetary policy mandate.

The Central Bank maintains that it remains “policy solvent,” meaning it has the internal capacity to implement key monetary policy actions, such as controlling inflation and managing interest rates, without relying on emergency government support.

In its 2025 financial statement, the Bank explained that this position is supported by its ability to generate sufficient income from monetary policy operations, particularly open market operations used to manage liquidity, inflation and exchange rate pressures.

It argued that recent economic developments will require continued intervention through these operations, but stressed that it still has the capacity to finance them internally.

The Bank said structural improvements in its income base and an agreed recapitalisation programme with government underpin its outlook.

It noted that “its financial performance over the medium term is assessed against Ghana’s macroeconomic trajectory.”

Looking ahead, the Bank projected that between 2026 and 2030, the economy is expected to record sustained real GDP growth, lower inflation following a prolonged disinflation process, and a stabilised external sector.

These conditions, it said, are expected to strengthen its financial position over time.

“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 added that returns from its external reserves will continue to support income generation.

“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 also explained that as monetary policy shifts towards easing, pressure on its earnings structure is expected to 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.

The Bank further said its outlook is anchored on disinflation trends, structural improvements in income, and government-backed recapitalisation.

Equity Position concerns

The Bank of Ghana disclosed that its negative equity worsened to GHC 93 billion in 2025, attributing it mainly to the Domestic Debt Exchange Programme and monetary policy operations in 2024 and 2025.

It explained that government has acknowledged its obligation to restore the Bank’s 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 inject instruments and/or cash 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 restore reserves to a prudent buffer level.

It further noted that the programme will strengthen financial resilience and reduce sensitivity to short-term income fluctuations.

“The proposed recapitalisation plan will further strengthen the Bank’s financial resilience by augmenting its capital base,” it stated.