The Bank of Ghana (BoG) is healing from the massive financial blow it suffered in 2022, but at a very slow pace. From a loss of GH¢ 60 billion in 2022, which became a major concern, the bank has been able to trim the loss down to just GH¢ 9.49 billion in 2024. This means two years on, the Central Bank has trimmed its wounds, although not healed completely.
A press release issued on June 5, 2025, which announced the 2024 financial performance of BoG, revealed that the narrowed GH¢9.49 operating loss recorded last year is down from the staggering GH¢13.23 billion recorded in 2023, signifying the progress the bank is making.
While the numbers still paint a picture of financial distress, the Bank has managed to post a modest net comprehensive gain of GH¢4.02 billion, signaling faint but notable progress.
Background to the 2022 Significance Loss
The BoG has always maintained that the GH¢ 60 billion loss recorded in its 2022 financial statements was not a result of operational inefficiencies or mismanagement. It was largely the result of the government’s Domestic Debt Exchange Programme (DDEP). In a public statement in August 2023 to clarify the issues, BoG clarified that out of the total loss, a significant GH¢ 53.1 billion was directly attributed to the restructuring of government debt. This was part of a broader strategy to secure an International Monetary Fund (IMF) bailout.
To meet the IMF’s debt sustainability threshold, the Bank of Ghana absorbed a 50% haircut on its non-marketable government debt holdings, resulting in GHS 32.3 billion in impairment losses. An additional GHS 16.1 billion came from impairments on marketable debt instruments, pushing the total impairment from government holdings to GHS 48.4 billion.
Other factors contributing to the loss included GHS 4.7 billion in impaired loans to Cocobod and GHS 5.2 billion in losses from exchange rate and price fluctuations during the economic crisis. The central bank emphasized that it was compelled to intervene in 2022 to stabilize the economy after the country’s access to international markets was cut off, domestic auctions failed, and foreign reserves dwindled. Despite the record loss, the Bank of Ghana stressed that central banks are not commercial banks and therefore cannot become insolvent in the traditional sense, assuring stakeholders of its continued commitment to prudent financial management and transparency.
With the background from 2022, let’s break down how the apex bank performed in 2024, leading to the significant shrinking of its loss.
A Smaller Hole, But a Hole Nonetheless
Despite a slight improvement, BoG’s equity remains firmly in negative territory. The Bank’s net equity improved from negative GH¢65.34 billion to negative GH¢61.32 billion. That’s a GH¢4.02 billion lift, largely driven by favorable revaluations. However, this still means the Bank owes more than it owns.
Some experts say that for an institution charged with managing Ghana’s monetary system, operating under such negative equity sends alarm bells ringing. It not only limits the Bank’s ability to act as a credible lender of last resort but also puts Ghana’s broader macroeconomic stability at risk.
The BoG’s total operating income in 2024 was GH¢9.40 billion, but it was overwhelmed by total operating expenses of GH¢18.89 billion.
Here’s what ate up the bank’s balance sheet:
Open Market Operations: GH¢8.60 billion
These operations, meant to manage liquidity and influence short-term interest rates, came at a steep cost. It’s a necessary tool, but an expensive one in Ghana’s current economic climate.
Revaluation and Exchange Losses: GH¢3.49 billion
A huge portion of this loss, GH¢1.82 billion, stemmed from the government’s Gold-for-Oil programme, showing just how fragile foreign exchange management remains.
Currency Issue Expenses: GH¢1.01 billion
Printing and distributing physical cash continues to be a costly endeavor, up from GH¢0.69 billion in 2023.
The Bank modified how it treats gains and losses in foreign exchange, gold holdings, SDRs, and foreign securities, adding further complexity to how its books reflect reality.
The Brightest Spots
Despite the loss, BoG has something to show beyond red ink. The net comprehensive gain of GH¢4.02 billion offers a glimmer of hope. This gain helped reduce the negative equity, largely due to asset revaluation, which is more of a paper recovery than a real cash inflow. Total assets also grew from GH¢140.41 billion in 2023 to GH¢215.06 billion in 2024.
Why This Matters to Ghanaians
A weak central bank isn’t just a financial issue, it’s a national one. The BoG’s health affects everything from interest rates to inflation, the strength of the cedi, and investor confidence. As the Bank continues to navigate recovery, transparency and credible policy actions will be key.
The Bottomline
It is important to recognize that the Bank of Ghana has made progress, judging from the deep cut it suffered in 2022. But the recovery is its crawling, not sprinting. A narrowed loss and a slight equity rebound show intent, but not yet strength.
However, there is optimism for a full recovery as the Governor of the Bank, Dr. Johnson Asiama, has initiated and implemented drastic reforms to navigate the apex bank out of the woods.
