The Bank of Ghana (BoG) has reaffirmed its commitment to the zero-financing policy of the national budget, a pledge it formalized through a memorandum signed with the Ministry of Finance in 2023. The Central Bank says this commitment marks a pivotal part of its ongoing effort to rebuild fiscal discipline, strengthen monetary credibility, and support macroeconomic stability.
Details of the Bank’s strategic direction were outlined in its 2024 Financial Statement, audited by Deloitte, and reflect a clear focus on restoring its balance sheet and operational resilience following the significant financial losses recorded in 2023.
“In addition to adhering to the zero-financing policy, the Bank will continue with policy measures aimed at optimizing its investment portfolio and operating cost mix to bolster efficiency and profitability,” the report noted.
The BoG’s Board, according to the statement, is taking “actionable steps to ensure a recovery and build-back of a positive equity position within the medium to long term.” These measures, it added, are consistent with the position held in 2023 that the Bank remains capable of operating effectively and efficiently as a going concern despite temporary setbacks.
On the macroeconomic front, the BoG expressed cautious optimism. It expects that improving economic conditions and a downward trajectory in inflation will create a more favourable monetary environment.
“From a macroeconomic perspective, as macroeconomic conditions continue to improve and inflation declines toward the medium-term target, interest rates will also decline and as a result, cost of Open Market Operation will reduce,” the Bank explained.
The report further stated that declining inflation would aid in stabilizing the exchange rate another key pillar in restoring investor confidence and economic predictability.
The BoG’s renewed emphasis on fiscal discipline, operational efficiency, and market-oriented monetary policy reinforces its role in Ghana’s economic recovery framework. With inflation trending downward and macroeconomic indicators gradually stabilizing, the Central Bank appears poised to regain both solvency and credibility over the medium term.
