The latest results from the Bank of Ghana show a loss of GH¢15.63 billion in 2025 and a total negative equity of GH¢93.82 billion. While these figures may sound alarming, experts say they do not mean the central bank is “broke” in the way a commercial bank would be.
Unlike private banks, a central bank can continue operating even with negative capital because it has the authority to issue currency and is backed by the Government of Ghana.
The more important issue, economists say, is whether the Bank can continue to manage inflation and stabilise the cedi effectively.
This is where concerns are emerging.
Although the Bank reported a policy surplus in 2025, analysts believe this was largely due to temporary income sources, such as gains from gold reserves. Without those, the Bank may actually be running a deficit in its core operations.
The Bank’s losses are partly the result of efforts to stabilise the economy, including its role in the Domestic Debt Exchange Programme and aggressive measures to control inflation.
However, these actions come with side effects. When the central bank incurs losses, it can inject more money into the economy, potentially increasing inflation. To counter this, the Bank must absorb excess liquidity—an expensive process that can lead to even more losses.
This cycle, if not controlled, could affect interest rates, inflation levels, and the strength of the cedi—key concerns for households and businesses.
To fix the problem, the Bank and the Ministry of Finance (Ghana) plan to recapitalise the central bank between 2026 and 2032. The plan aims to restore its financial position and strengthen its ability to manage the economy.
But the cost will ultimately fall on the state, raising concerns about public debt and government spending priorities, particularly under ongoing oversight from the International Monetary Fund.
For now, the message is mixed: the central bank is not in immediate danger, but its financial health could influence inflation, borrowing costs, and economic stability in the years ahead.
By: Toma Imirhe / businesspostonline
