BoG 2025 performance shows strong recovery

Ghana’s Central Bank recorded a GH¢15.6 billion loss in 2025, but key economic indicators point to a strong and steady recovery.

According to the Bank of Ghana’s 2025 Annual Report and Financial Statements for the year ended December 31, the loss deepened from GH¢9.48 billion recorded in 2024, marking the fourth consecutive year the Bank has posted losses.

Previous losses stood at GH¢60.9 billion in 2022 and GH¢10.5 billion in 2023, reflecting sustained financial pressure linked to policy interventions over the period.

The Bank attributed the 2025 loss largely to the cost of its aggressive monetary policy measures aimed at controlling inflation and stabilising the economy.

Despite the loss, total operating income increased significantly to GH¢22.23 billion, supported by improved reserve management, higher fee income and substantial proceeds from bullion gold sales.

However, these gains were outweighed by rising operational and market-related costs.

A major driver of expenditure was Open Market Operations (OMOs), which rose sharply to GH¢16.73 billion in 2025, nearly double the GH¢8.59 billion recorded in 2024. The increase reflects intensified efforts by the Bank to absorb excess liquidity from the system and maintain price stability, with interest payments to commercial banks forming a significant portion of the cost.

The Bank also recorded market-related losses, including a net loss of GH¢9.05 billion on gold transactions and GH¢5.47 billion in foreign exchange revaluation and exchange rate movements.

Despite these pressures, the Bank of Ghana maintained a positive policy solvency margin of GH¢5.5 billion, indicating that its core operating income remained sufficient to support its liquidity management operations.

Meanwhile, broader economic indicators showed notable improvement during the period.

Inflation declined significantly from 23.8 per cent at the end of 2024 to 5.4 per cent in 2025, and further to 3.2 per cent by March 2026, marking fifteen consecutive months of decline.

The Ghana cedi also strengthened, appreciating by 41 per cent over the year, while foreign reserves increased from US$9.1 billion in 2024 to US$13.8 billion in 2025, reaching a record US$14.5 billion in February 2026.

Additionally, the policy rate was reduced from 27 per cent in 2024 to 14 per cent by March 2026, leading to a drop in average lending rates from 30.2 per cent to 17.7 per cent, improving access to credit across the economy.

Overall, the Bank’s 2025 performance highlights the significant costs of restoring macroeconomic stability, while also reflecting clear gains in inflation control, currency strength, and reserve accumulation.

The report underscores a period of difficult but strategic policy implementation, with improving economic fundamentals despite continued financial strain on the central bank.