The Majority in Parliament has defended the Bank of Ghana’s (Bog) 2025 financial performance, arguing that the central bank’s reported losses are the result of deliberate policy actions to stabilise the economy rather than evidence of financial distress.
Addressing a press conference in Accra on Tuesday, May 5, the Member of Parliament for Amenfi West and Chairman of Parliament’s Economic and Development Committee, Eric Afful, said the Bank’s negative equity position should not be interpreted as insolvency.
“Negative equity in central banking is an accounting condition and does not imply insolvency. Central banks are not profit-maximising institutions like commercial banks; they are stabilising institutions,” he explained.
“Simply put, the Bank’s balance sheet reflects the cost of stabilising the economy during a period of severe economic distress.”
The Bank of Ghana’s 2025 financial statements show a deepening operating loss and a significant deterioration in its equity position, sparking public debate and criticism from sections of the opposition and policy analysts.
According to the figures, the central bank recorded a loss of GH¢15.63 billion in 2025, up sharply from GH¢9.49 billion in 2024, an increase of about 65 per cent year-on-year. As a result, its negative equity widened further to GH¢93.82 billion.
Despite the figures, the Majority insists such outcomes are not unusual during periods of aggressive monetary tightening, pointing to similar experiences among major central banks globally.
“Global experience shows that central banks such as the European Central Bank, the United States Federal Reserve, and the Reserve Bank of Australia have recorded losses during periods of policy tightening while achieving their objectives. What matters most is the outcome of the policy,” Mr Afful said.
He argued that the Bank’s performance should be assessed based on macroeconomic results rather than its balance sheet alone.
“On this front, the evidence is clear: inflation is down to single digits, the exchange rate has stabilised and strengthened, reserves have increased significantly, interest rates are easing, credit conditions are improving, and economic growth is picking up,” he added.
The Majority’s position comes amid heightened scrutiny of the central bank’s operations, including the cost of liquidity management, foreign exchange interventions, and gold-related transactions, all of which have contributed to the reported losses.
Mr Afful acknowledged that concerns around efficiency and transparency remain valid but stressed that the broader context of economic recovery must be considered when evaluating the Bank’s performance.
He maintained that the primary mandate of the Bank of Ghana is to ensure price and financial stability, not profit generation, and that recent policy measures have played a crucial role in restoring confidence in the economy.
The press conference forms part of efforts by the Majority to push back against what it describes as misinterpretations of the Bank’s financial position, as debate continues over the sustainability and long-term implications of current monetary policy decisions.
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Source: www.myjoyonline.com