The Bank of Ghana spent about GH₵17 billion in 2025 to absorb excess liquidity from the banking system as part of efforts to stabilise inflation and strengthen the transmission of monetary policy.
Governor Johnson Pandit Asiama disclosed this while addressing Parliament’s Committee on Economy and Development on Monday, where he outlined the financial implications of the central bank’s stabilisation policies.
According to him, the cost of liquidity management increased significantly as the central bank intensified open market operations to withdraw excess reserves from the banking system during the period of tight monetary policy.
“As policy interest rates remained elevated during the stabilisation period, the cost of these liquidity management operations naturally increased, going from 8.6 billion in 2024 to roughly GH₵ 17 billion at the end of 2025,” he said.
The operations formed part of broader measures by the central bank to restore macroeconomic stability, contain inflationary pressures and strengthen the effectiveness of monetary policy transmission.
Despite the rising costs, the Governor said the measures were necessary to ensure policy actions had the intended impact on the broader economy.
“These operations were essential to restore the effectiveness of monetary policy transmission and to contain inflationary pressures,” he stated.
The liquidity absorption measures were part of a wider set of policy actions undertaken by the central bank during Ghana’s recent stabilisation period, as authorities sought to restore confidence in the economy following high inflation and financial sector pressures.
