Bank of Ghana Trims Losses to GH¢9.5bn as Recovery Path Begins

The Bank of Ghana reduced its operating loss to GH¢9.49 billion in 2024, marking significant improvement from the GH¢13.23 billion loss recorded in 2023 and a drastic recovery from the GH¢60.8 billion deficit in 2022.

Despite this progress, the central bank’s equity position remains deeply negative at approximately -GH¢61.3 billion, reflecting the severe impact of Ghana’s recent economic crisis.

The 2024 results, released June 5, 2025, even showed a net comprehensive profit of GH¢4.02 billion after accounting for valuation adjustments, indicating stabilization though full financial rehabilitation is ongoing. BoG officials acknowledged “improvements in the bank’s financial performance” while noting persistent pressure on the financial system.

Central bank losses globally often stem from policy actions rather than commercial failure. The BoG’s 2024 loss was primarily driven by GH¢8.60 billion spent on interest for monetary operations aimed at curbing inflation and stabilizing the currency.

Exchange-rate movements, including GH¢1.82 billion from the Gold-for-Oil program, contributed GH¢3.49 billion in revaluation losses. Asset impairments, particularly from the 2022 Domestic Debt Exchange Programme which forced haircuts on government securities, caused the catastrophic GH¢60.8 billion loss that year. Routine operational costs like the GH¢1.01 billion currency issuance expense further strained finances.

Economist Prof. Godfred Bokpin emphasized that stability supersedes aggressive currency swings, stating: “Stability is preferred over swings, whether appreciation or depreciation. It’s neither good for businesses nor central banking.” While central banks can operate effectively with negative equity – as evidenced by Israel, Chile, and the Czech Republic – persistent losses risk eroding institutional independence. Reliance on government recapitalization or money printing to cover deficits could undermine inflation control and public confidence. The suspension of profit remittances to Ghana’s treasury also strains public finances during recovery.

The BoG’s situation mirrors global trends where major institutions like the Swiss National Bank (CHF 132bn loss in 2022), U.S. Federal Reserve, and Reserve Bank of Australia incurred massive deficits after aggressive rate hikes and quantitative easing unwind. Ghana’s central bank is implementing corrective measures including halting direct budget financing, optimizing operations, and retaining future profits – essential steps to rebuild trust while continuing its core mandate. This gradual financial mending underscores a fundamental reality: central bank losses, though politically sensitive, are frequently the necessary cost of safeguarding broader economic stability during crises.