The Majority in Parliament has once more defended the Bank of Ghana’s 2025 financial results.
At a press conference in Parliament on Tuesday, May 5, the Caucus argued that the central bank’s reported losses are a result of the cost of stabilising the economy through deliberate policy measures.
Speaking to the media, the Member of Parliament for Amenfi West and Chairman of Parliament’s Economic and Development Committee, Eric Afful, said the Bank’s negative equity position should not be regarded as insolvency.
“Negative equity in central banking is an accounting condition and does not imply insolvency. Central banks are not profit-maximising institutions like commercial banks; they are stabilising institutions,” he explained.
The Bank of Ghana recorded a GH¢15.63 billion loss for the 2025 financial year, an increase from the GH¢9.49 billion loss recorded in 2024.
The Bank’s negative equity has also widened to GH¢93.82 billion, sparking public debate and criticism from the Minority and other finance analysts.
However, Mr Afful maintained that such outcomes are not unlikely events during periods of monetary tightening, referencing similar experiences by major global central banks.
“Institutions such as the European Central Bank, the United States Federal Reserve and the Reserve Bank of Australia have all recorded losses during periods of policy tightening while achieving their objectives,” he noted.
He argued that the Bank’s performance should be assessed based on macroeconomic outcomes rather than financial statements alone, pointing to improvements in key economic indicators.
“Inflation has declined to single digits, the exchange rate has stabilised and strengthened, reserves have increased, interest rates are easing, and economic growth remains robust,” he said.
He reiterated that the core mandate of the Bank of Ghana is to maintain price and financial stability, not to generate profit, adding that recent policy interventions have helped restore confidence in the economy.
“Central banks are not profit-maximising institutions like commercial banks; they are stabilising institutions.
“Simply put, the Bank’s balance sheet reflects the cost of stabilising the economy during the period of severe economic distress,” he said.
