The Bank of Ghana recorded a loss of GH¢15.6 billion in 2025, highlighting the heavy financial toll of its aggressive drive to stabilise the economy after a prolonged period of crisis-led policy tightening.
According to audited financial statements, the loss marks a significant jump from GH¢9.49 billion in 2024, while negative equity also worsened, rising to GH¢93.82 billion from GH¢58.62 billion.
At first glance, the central bank’s financial position has deteriorated considerably, largely due to the sustained costs of liquidity management and sterilisation operations.
However, the broader policy outcome presents a more complex picture. In terms of its core objective, the institution has largely succeeded in restoring price stability and anchoring inflation expectations.
Inflation dropped sharply from 23.8% in 2024 to 5.4% by the end of 2025, before declining further to 3.2% in March 2026, moving below the bank’s target range.
This rapid disinflation represents a clear shift away from the instability that followed the post-pandemic economic disruption, helping to restore more predictable pricing conditions for both businesses and households.
Early signs of improvement are already visible in the wider economy. The easing of inflation has supported a more stable cedi, reduced fluctuations in money markets, and lowered pressure on interest rates.
As a result, lending activity to the private sector is beginning to recover, with cautious improvements in credit flow as confidence gradually returns to the financial system.
Nevertheless, achieving these outcomes has come at a significant cost. Expenditure on open market operations rose sharply to GH¢16.73 billion, driven by interest payments linked to liquidity-absorbing instruments such as central bank bills and repo transactions.
While these tools were necessary to tighten monetary conditions, they have effectively transferred much of the adjustment burden onto the central bank’s own finances.
This reflects a familiar situation in monetary policy: success in controlling inflation often comes alongside mounting financial strain on the central bank.
By firmly tightening liquidity conditions, the institution was able to suppress secondary inflationary pressures.
However, this approach also generated substantial quasi-fiscal losses, weakening its capital position in the process.
Under its legal mandate, the central bank is not primarily focused on profit generation.
The 2025 results therefore underscore a typical challenge faced by monetary authorities in emerging economies—accepting weaker balance sheets in exchange for restored economic stability and credibility.
In this context, the reported losses are better understood as the cost of restoring macroeconomic order rather than an operational failure.
Looking ahead, the key issue is whether these gains can be maintained without further significant strain on the balance sheet.
Future outcomes will depend on how quickly liquidity conditions normalise, the coordination between fiscal and monetary policy, and the strength of external buffers.
Over time, attention will shift to how the Bank of Ghana strengthens its financial position without reversing progress on inflation control.
Possible options include retaining future profits, adjusting parts of its balance sheet structure, or considering recapitalisation support.
For now, the financial statements present a clear conclusion: macroeconomic stability has been achieved, but at a considerable cost.