The reported GH¢15.6 billion loss by the Bank of Ghana for 2025 should be viewed as the financial cost of stabilising the economy rather than a sign of failure, according to finance policy analyst Senyo Kwasi Hosi.
In a commentary titled “The BoG Loss That Saved the Economy,” Hosi argued that public discourse has focused too heavily on the headline figure while overlooking the policy outcomes achieved.
“The speed with which we criticise should match the speed with which we acknowledge success,” he wrote.
Hosi explained that the central bank’s financial results were driven by three major policy-related costs. These include GH¢16.7 billion spent on open market operations to absorb excess liquidity, GH¢9.1 billion under the Domestic Gold Purchase Programme, and GH¢29.1 billion in foreign exchange revaluation charges.
“These are not commercial losses. They are policy costs; the price of reversing years of fiscal slippages and monetary expansion.” - Senyo Kwasi Hosi
He emphasised that central banks are not profit-driven institutions but are mandated to ensure price stability, protect the currency and maintain confidence in the financial system.
Inflation and Liquidity Turnaround
According to Hosi, the Bank of Ghana had limited options given the scale of macroeconomic pressures entering 2025, including a fiscal deviation exceeding GH¢36 billion that flooded the system with liquidity.
He pointed to a sharp decline in reserve money growth, from 104.5 per cent in late 2024 to 2.6 per cent by December 2025, as evidence of effective intervention.
Inflation also dropped significantly, falling from 23.8 per cent to 5.4 per cent and further to 3.2 per cent by March 2026.
“This is the clearest demonstration of decisive monetary policy in action,” he said, describing open market operations as a critical anti-inflation tool.
Hosi rejected claims that foreign exchange losses reflected real financial damage, explaining that they were largely accounting adjustments.
He noted that the cedi’s 40.7 per cent appreciation reduced the local currency value of foreign assets, creating what he described as a “paper loss.”
“The US$100 remained the same but in cedi terms, GH¢425 was lost; a paper loss,” he explained.
Gold Programme and Reserve Gains
He also defended the Domestic Gold Purchase Programme, arguing that its costs must be weighed against gains in reserves and economic resilience.
According to Hosi, Ghana’s reserves increased from US$9.1 billion to US$13.8 billion, with import cover reaching 5.7 months and gold holdings expanding to 111 metric tonnes.
The stabilisation effort delivered significant economic benefits, including single-digit inflation, a stronger cedi, reduced import costs, lower lending rates and improved investor confidence.
Hosi concluded that the Bank of Ghana’s loss reflects its willingness to absorb financial costs to protect the wider economy.
“The Bank of Ghana’s 2025 loss is not evidence of mismanagement. It is evidence of a central bank doing exactly what its mandate requires,” he said, crediting Governor Johnson Asiama and his deputies for steering the turnaround.
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