The Majority Caucus in Parliament has commended the Bank of Ghana (BoG) for increasing the country’s international reserves from $9.1 billion in 2024 to $14.5 billion as of February 2026.
The Caucus noted that the latest figure also represents an increase from the $13.8 billion recorded at the end of 2025, describing it as a historic milestone.
“This is the highest reserves Ghana has ever recorded in history,” the Caucus said.
Policy rate cuts drive cheaper credit
Addressing the media in Parliament, a member of the Finance Committee, Atta Issah, said the policy rate had been reduced from 27 per cent at the end of 2024 to 14 per cent as of March 2026.
He indicated that lending rates had also declined significantly in response.
“The average lending rates have followed it down from 30.2 per cent to 17.7 per cent.
“That means cheaper loans for the small business owner trying to expand, the farmer buying inputs, the trader who borrows to stock her shop, and the young couple buying their first home,” he said.
The commendation follows the release of the Bank of Ghana’s 2025 financial statements.
Public debt and growth indicators improve
Mr Issah, who is the Member of Parliament for Sagnarigu, said Ghana’s public debt had declined from 62.5 per cent of Gross Domestic Product (GDP) to 45 per cent as part of broader stabilisation measures implemented by the BoG and the Ministry of Finance.
He added that the economy grew by six per cent in 2025, surpassing the projected four per cent growth rate for the year.
He further noted that business and consumer confidence had reached record levels, attributing the gains to the central bank’s interventions.
“These are benefits as a result of the cost done by the BoG,” he said.
“Reserves would have run lower, lending rate above 30 per cent and all these happening in a global environment of war, of trade tariffs reshaping the international ecosystem, of capital flight from emerging markets and other economies in our region and beyond are still struggling with all these pressures, Ghana is still resilient and not affected by that,” he said.
Cost of stabilisation reflected in BoG finances
Mr Issah noted that the economic gains did not come without cost, explaining that the central bank had incurred significant financial losses as part of its stabilisation efforts.
“The Bank of Ghana had to absorb the cost but the country, you and I, are all benefiting from that,” he said.
According to the BoG’s financial statements, the bank recorded a net loss of GH₵15.6 billion in 2025, compared to a loss of GH₵9.4 billion in 2024.
Other comprehensive income posted a charge of GH₵19.32 billion, reflecting the impact of a stronger cedi on the local currency value of foreign reserves.
The bank’s net equity position also deteriorated, moving from a negative GH₵35 billion at the end of 2025 from a negative GH₵61.3 billion at the end of 2024, having previously recorded a positive GH₵1.2 billion in 2021.
Cumulatively, he said, the net equity position stood at about GH₵96.3 billion.
“This simple means that as at the time President Mahama assumed office, the total negative equity position of Bank of Ghana was GH₵61.3 billion.
“Meanwhile, as at 2021, we had a positive net equity of GH₵1.2 billion,” he said.
Inflation drops sharply amid policy measures
Mr Issah said inflation had declined sharply from 23.8 per cent at the end of 2024 to 5.4 per cent by December 2025 and further to 3.2 per cent by March 2026, marking the 15th consecutive month of decline.
“For the woman buying tomato at the market, that means the price of a basket of food is stable and not increasing drastically as it did a year ago.
“For the family paying school fees, electricity and hospital costs, the stability is real,” he said.
He attributed the trend to policy interventions, including open market operations which cost GH₵16.7 billion in 2025 to absorb excess liquidity.
He added that inflation had fallen from a peak of 54.1 per cent in 2022 to 3.2 per cent in March this year.
The policy rate, which underpins the Ghana Reference Rate and interbank lending, declined from about 30 per cent to around 14 per cent, while lending rates dropped from 35.6 per cent in 2022 to 19.2 per cent at the end of 2025.
Source:
www.graphic.com.gh