The Bank of Ghana has reported an operational loss of GH¢15.6 billion for the 2025 financial year, marking the second-highest loss since the cedi redenomination in 2008 after GH¢60 billion incurred in 2022 as part of the Domestic Debt Exchange Programme (DDEP).
This underscores the growing financial cost of Ghana’s recent macroeconomic stabilisation efforts.
Published on May 1, 2026, the Bank’s 2025 financial statement shows a further deterioration in its financial position, with negative equity widening sharply from GH¢58.62 billion to GH¢93.82 billion within the year.
This represents a deepening erosion of the central bank’s capital base following successive years of crisis-response policy interventions.
Combined losses approach GH¢34.92 billion
The report indicates that the Bank recorded a combined loss of about GH¢34.92 billion in 2025, driven largely by major components: sterilisation and liquidity management costs of GH¢16.73 billion, and reserve-related valuation losses of about GH¢19.32 billion losses recorded under in Other Comprehensive Income (OCI), arising from exchange rate movements and revaluation of foreign assets and gold holdings.
Together, these losses highlight the extent to which the central bank’s balance sheet was deployed as a key instrument in stabilising inflation and supporting the cedi during a period of sustained macroeconomic pressure.
Liquidity sterilisation drives cost escalation
At the heart of the loss profile is the Bank’s aggressive liquidity sterilisation programme, designed to absorb excess money supply from the banking system.
The GH¢16.73 billion cost reflects interest payments associated with open market operations and other monetary instruments used to tighten liquidity conditions and contain inflation.
While the approach contributed to stabilising price levels and supporting the currency, it also imposed a significant quasi-fiscal burden on the central bank.
The scale of the expenditure signals a marked increase in the cost of monetary policy execution in a high-interest-rate environment.
Exchange rate effects and reserve valuation pressures
In addition to policy-driven costs, the Bank incurred GH¢19.32 billion in reserve-related valuation losses, primarily linked to movements in exchange rates and changes in the local currency value of foreign reserves and gold holdings.
However, these losses were partly offset by GH¢9.57 billion in realised gains from the sale of 27.6 tonnes of gold, valued at approximately GH¢40.3 billion at the point of transaction.
The gold sales provided critical foreign exchange inflows that helped cushion the overall impact on the Bank’s financial position.
Despite this offset, the underlying structural costs of monetary operations remained elevated, preventing a full recovery of the balance sheet.
Gold-for-Reserves programme adds further strain
The Bank’s Gold-for-Reserves (G4R) programme also contributed to the weakened financial position, recording a loss of GH¢8.85 billion in 2025.
Originally intended to strengthen external buffers and support reserve accumulation, the programme has instead become a source of financial pressure under prevailing market and valuation conditions.
Negative equity widens sharply
As a result of these combined pressures, the Bank’s negative equity expanded by GH¢35 billion, pushing total cumulative deficit to GH¢96.3 billion by the end of 2025.
This reflects a continued weakening of the central bank’s capital position, following several years of intensive policy intervention to manage macroeconomic instability.
In addition, the Bank recorded a substantial other comprehensive income charge of GH¢19.32 billion, driven largely by valuation effects from the strengthening of the cedi against major international currencies.
While a stronger currency helps reduce inflation and import costs, it also reduces the cedi value of foreign reserves on the Bank’s balance sheet.
Policy-driven losses, not operational failure
The central bank maintains that the losses are largely policy-driven and accounting-related, rather than a result of operational inefficiency.
According to the Bank, the financial outcome reflects deliberate decisions taken to aggressively combat inflation, stabilise the foreign exchange market, and restore investor confidence during a period of heightened economic stress.
These measures formed part of a broader stabilisation framework anchored on liquidity absorption, reserve accumulation, and currency support operations.
Stabilisation achieved at a cost
Analysts note that the 2025 results highlight a classic central banking trade-off: macroeconomic stability achieved at the expense of balance sheet strength.
The combination of sterilisation costs and valuation effects underscores the role of the central bank as the primary shock absorber in the economy.
While inflationary and exchange rate pressures have eased significantly, the financial cost of achieving that stability has raised questions about the sustainability of the current policy mix.
Recapitalisation framework in motion
To address the widening negative equity position, the Bank has confirmed that medium-term recapitalisation arrangements are underway, in line with recent amendments to the Bank of Ghana Act.
These measures are expected to gradually restore the Bank’s financial buffers and strengthen its capital position over time.
For now, however, the 2025 financial results present a clear trade-off: Ghana’s stabilisation programme has delivered notable macroeconomic gains, but at a substantial and growing cost to the central bank’s own balance sheet.
