Majority Caucus Defends BoG Losses as Cost of Stability, Hails Record Reserves Under GANRAP
The Majority Caucus on Parliament’s Finance Committee, have thrown their weight behind the Bank of Ghana, following the release of its 2025 financial report, describing the GH¢15.6 billion reported loss as the necessary cost of restoring economic stability.
Speaking at a press briefing in Parliament on Thursday, April 30, Hon. Issah Atta, a member of the committee emphasised that the central bank’s performance should not be assessed using commercial profit metrics.
“The mistake any observer can make is to judge a central bank by the standards of a commercial company,” he stated, echoing the Bank’s position.
“The right test is whether it has delivered on price stability, financial stability, and economic confidence. By that test, 2025 was a year of significant achievement.”
The Bank’s latest results show a widening loss from GH¢9.4 billion in 2024, alongside a persistently negative equity position.
However, officials attribute this to deliberate policy interventions and the lingering effects of the Domestic Debt Exchange Programme rather than operational inefficiency.
Despite the headline figures, the central bank points to a markedly improved macroeconomic environment. Inflation fell sharply from 23.8 percent at the end of 2024 to 5.4 percent by December 2025, and further to 3.2 percent by March 2026.
“For the woman buying tomatoes at the market, that means prices are no longer rising unpredictably,” the Bank noted, underscoring the real-life impact of stabilisation efforts.
The Ghana cedi also rebounded strongly, appreciating by 41 percent in 2025 after losing 19 percent the previous year.
This recovery supported a significant build-up in international reserves, which rose from US$9.1 billion in 2024 to US$13.8 billion by the close of 2025, and reached a record US$14.5 billion by February 2026.
Central to this reserve growth is the Ghana Accelerated National Reserve Accumulation Policy, a newly legislated framework aimed at strengthening Ghana’s external buffers.
Dr Johnson Asiama, Governor BoG
The policy formalises the use of the country’s gold resources to build reserves under a more sustainable financing model.
“GANRAP takes the strategy of using Ghana’s own gold to build reserves and gives it the force of national law,” the Bank explained. “Under the new framework, offtakers pre-finance the programme, while the Ministry of Finance provides budgetary support, replacing the structure that created significant accounting costs in 2025.”
The gold accumulation programme expanded significantly, with reserves reaching approximately 111 tonnes in 2025, up from less than one tonne in 2021.
Although this contributed to an estimated GH¢9 billion in accounting costs, the Bank stressed that the underlying assets remain intact. “The gold itself has not been lost; the reserves are real,” it said.
The Majority further clarified that a substantial portion of the reported loss stems from exchange rate dynamics. The strengthening cedi reduced the domestic value of foreign assets, resulting in a GH¢19.32 billion accounting charge. “The dollars did not leave; in fact, they increased,” the Bank stated. “This is the mirror image of gains recorded when the cedi was weakening.”
Aggressive monetary tightening also played a role, with the Bank spending GH¢16.7 billion on liquidity operations to absorb excess money supply and rein in inflation.
“The bigger spend matched the bigger result,” officials noted, linking the intervention directly to the sharp inflation.
On the issue of negative equity, the central bank pointed to the impact of the debt restructuring programme, under which it absorbed significant losses as part of Ghana’s broader fiscal adjustment. “The negative equity is the balance sheet record of the Bank’s contribution to restoring debt sustainability,” it explained.
Hon. Atta maintained that these financial outcomes do not undermine the Bank’s effectiveness.
“These results do not affect its ability to implement monetary policy or manage reserves. The authority of the Bank comes from law, not from its balance sheet,” he said.
Looking ahead, the Bank expressed confidence that the 2025 loss represents a peak, citing declining inflation, lower interest rates, and structural improvements introduced under GANRAP.
“The financial results reflect the work required to restore stability,” the Bank concluded. “That work has been done. Inflation is down, the cedi is stronger, reserves are at record levels, and confidence is back,the Majority Caucus added.
Source: Felix NYAABA/ expressnewsghana.com
About Author
