The Bank of Ghana has asserted the soundness of its financial standing for the 2025 fiscal period, maintaining that notwithstanding the recording of an operating deficit amounting to GH¢15.6 billion together with a negative equity position, the institution retains full capacity to execute its fundamental monetary policy responsibilities.
The central monetary authority emphasised that it continues to be “policy solvent,” a designation indicating that it possesses the inherent capability to carry out essential policy interventions, including the regulation of inflationary pressures and the administration of interest rate mechanisms, without recourse to extraordinary fiscal assistance from government.
Within its 2025 financial report, the institution clarified that this resilience is underpinned by its ability to derive adequate revenue from monetary policy engagements, particularly through open market operations which are deployed to regulate liquidity conditions, stabilise inflation dynamics, and address fluctuations within the foreign exchange environment.
It conveyed that prevailing economic conditions will necessitate sustained engagement through such policy instruments, while underscoring that it remains sufficiently equipped to internally fund these interventions without compromising operational continuity.
The central bank further indicated that ongoing structural enhancements to its revenue framework, together with a mutually agreed recapitalisation arrangement with government authorities, provide a firm foundation for its forward looking financial outlook.
It observed that its medium term financial performance will be evaluated in relation to the broader macroeconomic direction of the Ghanaian economy, reflecting an integrated approach to fiscal and monetary stability.
Projecting into the period spanning 2026 to 2030, the institution anticipates that the economy will achieve consistent real gross domestic product expansion, accompanied by a sustained decline in inflation following an extended disinflationary phase, alongside improved stability within the external sector.
According to the Bank, these anticipated developments are expected to progressively reinforce its financial condition over time, enabling a gradual recovery in key performance indicators.
It explained that such conditions will contribute to an incremental enhancement in net interest income, a reduction in interest related costs associated with reserve accumulation, and ultimately a restoration of cumulative profitability across the projected horizon.
Additionally, the Bank highlighted that earnings generated from its external reserve holdings will continue to serve as a vital source of income support, particularly within the context of prevailing global interest rate conditions.
It maintained that as these external assets continue to yield returns, the institution’s capacity to sustain its operational activities will remain firmly intact in the years ahead.
The Bank also noted that a transition in monetary policy direction towards a more accommodative stance is expected to alleviate pressures within its earnings structure, thereby moderating the compression previously experienced in its net interest margins.
It reiterated that its forward outlook is grounded in continued disinflationary trends, ongoing improvements in income generation structures, and the implementation of a government supported recapitalisation framework.
With regard to its capital position, the Bank disclosed that its negative equity deepened to GH¢93 billion in 2025, attributing this deterioration primarily to the effects of the Domestic Debt Exchange Programme alongside intensive monetary policy interventions undertaken during 2024 and 2025.
The institution further revealed that government has formally recognised its statutory responsibility to restore the Bank’s capital adequacy in accordance with the Bank of Ghana Act, 2002 (Act 612) as subsequently amended.
It confirmed that a structured and phased recapitalisation programme has been jointly established between the central bank and the Ministry of Finance, outlining a clear pathway toward financial restoration.
Under the agreed framework, government is expected to inject a combination of financial instruments and direct capital contributions over the period from 2026 through 2032, with the objective of rebuilding the Bank’s capital base.
The Bank expressed confidence that these recapitalisation inflows will culminate in the attainment of positive net equity by the year 2032, thereby restoring financial buffers to prudent and sustainable levels.
It further emphasised that the implementation of this programme will enhance institutional resilience, while simultaneously reducing vulnerability to short term fluctuations in income streams.
In conclusion, the Bank maintained that the proposed recapitalisation initiative will significantly reinforce its financial stability by strengthening its capital foundation and ensuring the continued effectiveness of its monetary policy mandate.
