The Majority in Parliament has defended the Bank of Ghana\u2019s 2025 financial results, insisting that the central bank\u2019s reported losses reflect the cost of stabilising the economy rather than signs of financial weakness.<\/p>\n
Addressing a press conference in Accra on Tuesday, May 5, the Member of Parliament for Amenfi West and Chairman of Parliament\u2019s Economic and Development Committee, Eric Afful, said the Bank\u2019s negative equity position should not be misconstrued as insolvency.<\/p>\n
\u201cNegative equity in central banking is an accounting condition, and does not imply insolvency. Central banks are not profit-maximising institutions like commercial banks; rather, they are stabilising institutions. Simply put, the Bank\u2019s balance sheet reflects the cost of stabilising the economy during the period of severe economic distress,\u201d he said.<\/p>\n
The Bank of Ghana\u2019s 2025 financial statements show a significant operating loss and a widening negative equity position, developments that have triggered intense public debate and criticism from sections of the opposition and policy analysts.<\/p>\n
The Bank of Ghana (BoG) has posted a GH\u00a215.63 billion loss for the 2025 financial year. This is a sharp deterioration from the GH\u00a29.49 billion loss recorded in 2024. The roughly 65% year-on-year increase comes at a time when key macroeconomic indicators particularly inflation and exchange rate volatility have stabilised.<\/p>\n
Consequently, the balance sheet of the Bank has weakened further, with negative equity widening to GH\u00a293.82 billion.<\/p>\n
However, the majority maintained that such outcomes are not unusual in periods of aggressive monetary tightening, pointing to global precedents.<\/p>\n
\u201cIndeed global experience shows that major central banks including the European Central Bank, the United States Federal Reserve and the Reserve Bank of Australia have recorded losses during periods of aggressive policy tightening like what we had in Ghana whilst achieving their policy objectives. What matters most is the outcome of the policy,\u201d Eric Afful said.<\/p>\n
He argued that the effectiveness of the Bank\u2019s interventions should be assessed based on macroeconomic outcomes rather than financial statements alone.<\/p>\n
\u201cOn this front, the evidence is clear. In that inflation is down to single-digit, exchange rate has stabilised and strengthened, reserves have increased significantly, interest rates are easing, credit conditions are improving and economic growth is robust,\u201d he added.<\/p>\n
The Majority\u2019s defence comes amid ongoing scrutiny of the central bank\u2019s operations, particularly the cost of liquidity management, foreign exchange interventions, and gold-related transactions, which have contributed to the reported losses.<\/p>\n
Mr Afful said while concerns about efficiency and transparency remain valid, the broader context of economic recovery must be taken into account in evaluating the Bank\u2019s performance.<\/p>\n
He emphasised that the primary mandate of the Bank of Ghana is to maintain price and financial stability, not to generate profits, and that recent policy measures have played a critical role in restoring confidence in the economy.<\/p>\n
The press conference forms part of efforts by the Majority to counter what it describes as misinterpretations of the Bank\u2019s financial position, as debate continues over the sustainability and long-term implications of current monetary policy choices.<\/p>\n","protected":false},"excerpt":{"rendered":"The Majority in Parliament has defended the Bank of Ghana\u2019s 2025 financial results, insisting that the central bank\u2019s…\n","protected":false},"author":2,"featured_media":433886,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-433885","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/433885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=433885"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/433885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/433886"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=433885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=433885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=433885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}