Imagine you are the captain of a massive ship caught in a violent storm. To keep the ship from sinking and save the passengers, you decide to throw some heavy cargo overboard and push the engines to their absolute limit. The ship eventually reaches calm waters, and everyone is safe, but when you pull into the harbour, the ship’s logbook shows a massive bill for repairs and lost cargo.
This is essentially the story of the Bank of Ghana (BoG) in 2025, as explained by the Governor, Dr. Johnson Asiama.
The Price of a Calm Sea
While the Ghanaian economy has seen some remarkable “wins” such as inflation dropping to 3.2% and the cedi gaining 41% in value, these victories weren’t free. In a meeting with the Council of State on April 23, Dr. Asiama made it clear that the BoG’s upcoming 2025 financial statement will likely show the “accounting cost” of these achievements.
In plain terms, the bank took a hit so the economy could heal. On separate occasions, the Governor has consistently stated that the cedi stabilisation came at a cost to the BoG, framing these financial results as a direct trade-off for national stability.
Why the “Loss” Happened
The Governor explained that several factors converged to squeeze the Bank’s balance sheet. A primary driver was the Domestic Debt Exchange Programme (DDEP), which significantly reduced the income the Bank earned from its government security portfolio. Additionally, the Bank’s Gold Programme carried structural costs; the gap between the market rate for purchasing gold and the interbank rate used for recording it created a noticeable accounting loss.
Aggressive monetary policy also played a role. To fight inflation, the BoG had to absorb excess liquidity through open market operations, which carried interest costs. Furthermore, the record appreciation of the cedi created a valuation effect that reduced the reported value of the Bank’s foreign currency assets. Despite these red numbers, Dr. Asiama reassured the Council that these accounting effects do not hinder the Bank’s ability to fulfill its primary mandate.
A Consistent Message: “Stabilisation Comes at a Cost”
This narrative of sacrifice for the greater good has been a central theme for the Governor. By emphasizing that cedi stabilisation came at a cost to the BoG, he has sought to explain why a central bank might post a loss while the broader economy shows signs of recovery. He views these financial outcomes as the price paid to rebuild external reserves, which reached a record US$14.5 billion and to strengthen the overall banking sector.
Mixed Reactions to the Final Numbers
However, not all analysts will side with the Governor when the BoG 2025 accounts are eventually published and the Bank officially records a loss. Some market experts have already criticized the Governor for injecting too much money into the system to stabilize the cedi, arguing the cost was too high. Furthermore, other analysts have raised concerns over the losses the IMF noted the BoG suffered specifically due to the “gold for reserve” policy, suggesting that the path to stability may have been more expensive than necessary.
