BoG losses and public gains: Understanding the accounting cost of Ghana’s monetary stabilisation and the benefit to citizens
The Bank of Ghana reported a significant accounting loss in its 2025 annual financial results due to monetary policy interventions that led to macroeconomic stabilisation. The loss was driven by four specific sources, including the domestic debt exchange programme and open market operations, which delivered benefits such as reduced inflation and improved GDP growth.
The Bank of Ghana's 2025 annual financial results show a significant accounting loss, but this is not evidence of institutional failure. The loss is a direct financial consequence of monetary policy interventions that produced significant macroeconomic stabilisation. Headline inflation reduced from 54.1% to 5.4%, the cedi appreciated by 40.7%, and GDP growth reached 6.02%. The loss was driven by four sources: the domestic debt exchange programme, open market operations, Ghana's domestic gold programme, and other factors. The Bank of Ghana participated in the domestic debt exchange programme as a national policy decision, restructuring government securities and reducing its income-generating capacity. Open market operations required paying interest to attract deposits from commercial banks, costing approximately GHC 16.7 billion. The benefits of these interventions include lower inflation, improved GDP growth, and increased gross international reserves.
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