Understanding the Rising Losses of the Bank of Ghana: Trends, Drivers, and Policy Options (2025)

 

1. Executive Summary

The Bank of Ghana recorded a net loss of GH¢15.6 billion in 2025, representing a 66% increase from the GH¢9.4 billion loss in 2024. This extends a sequence of post-crisis losses following the unprecedented GH¢60.8 billion loss in 2022, largely triggered by the Domestic Debt Exchange Programme (DDEP).

While central bank losses are not inherently destabilizing, the persistence and escalation of losses raise important fiscal, monetary, and credibility concerns. The evidence suggests that the 2025 losses are driven by a combination of sovereign debt impairments, high monetary policy costs, exchange rate pressures, and quasi-fiscal operations.

This brief evaluates the trend, identifies the underlying drivers, and proposes actionable policy responses to strengthen central bank balance sheet resilience........

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