Banking consultant Dr. Richmond Atuahene has described the Bank of Ghana\u2019s (BoG) reported GH\u20b515.6 billion loss as a \u201cnecessary evil,\u201d arguing that they reflect policy actions taken to stabilise the macroeconomic environment rather than operational failure.<\/p>\n
Speaking on Joy FM\u2019s Super Morning Show on Friday, May 1, Dr. Atuahene said the central bank\u2019s 2025 financial results, though appearing worrying on the surface, require deeper analysis to understand their underlying drivers.<\/p>\n
\u201cWhat I\u2019ve seen is that their losses have increased, and it looks like a big worry, but if you go into the details, you would appreciate that it is a necessary evil,\u201d he said.<\/p>\n
He explained that the headline losses were largely driven by three major factors: currency revaluation effects, open market operations (OMO), and issues relating to gold transactions.<\/p>\n
According to him, foreign exchange revaluation losses occur when the cedi appreciates against major foreign currencies such as the US dollar or euro, affecting the valuation of the central bank\u2019s foreign assets.<\/p>\n
He further noted that the Bank of Ghana\u2019s aggressive use of OMO instruments to contain inflation also contributed significantly to the losses.<\/p>\n
\u201cIf you want to bring inflation down, you have to be aggressive through OMO operations. That made them move from about GH\u20b5 8.1 billion to GH\u20b5 16.7 billion in losses,\u201d he explained.<\/p>\n
Dr. Atuahene also pointed to ongoing challenges in the accounting and management of gold transactions, describing them as a long-standing issue dating back to 2021.<\/p>\n
\u201cThe gold issues are not new. We need to sit down as a country and restructure gold transactions because they are very important for currency stability and reserve building,\u201d he said.<\/p>\n
He stressed that despite the financial losses, the central bank\u2019s actions were aimed at strengthening macroeconomic stability and restoring confidence in the economy.<\/p>\n
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