BoG posts GH¢9.49bn loss for the 2024 financial year, deepening the concerns around its financial sustainability, but showing modest signs of recovery in its overall equity position.
The loss detailed in the central bank’s just-released 2024 financial statement, was driven by a total operating income of GH¢9.40 billion, which fell far short of the GH¢18.89 billion in operating expenses the Bank incurred over the same period.
BoG posts GH¢9.49bn
Despite the steep loss, the BoG reported a GH¢4.02 billion gain in its equity position, reducing the Bank’s negative equity from GH¢65.34 billion in 2023 to GH¢61.32 billion at the end of 2024.
Costly policy operations and exchange pressures bite
The BoG attributed the huge loss primarily to the rising costs of its monetary policy operations and losses from foreign exchange revaluations.
Key among these was the GH¢8.60 billion spent on open market operations, the principal tool used to control liquidity and inflation.
Further complicating matters were revaluation and exchange losses totaling GH¢3.49 billion, including a GH¢1.82 billion foreign exchange loss arising from the Government of Ghana’s Gold-for-Oil programme.
This initiative, introduced to reduce forex pressure from petroleum imports, has now emerged as a costly venture for the central bank.
Additionally, currency issuance expenses surged to GH¢1.01 billion in 2024, up from GH¢690 million in 2023, putting more strain on the Bank’s finances.
BoG also cited changes in its accounting treatment of foreign exchange gains and losses — particularly those from revaluing gold holdings, foreign securities, and special drawing rights — as contributing factors to the final loss figure.
BoG defends transparency, reaffirms stability mandate
Despite the grim figures, the central bank defended its performance, stating that the release of the 2024 Financial Statements reflects its compliance with statutory obligations and commitment to transparency and sound financial governance.
“The Bank remains committed to maintaining price and financial stability, and to creating an enabling environment for businesses and individuals to thrive,” the financial statement added.
The BoG’s total assets rose sharply from GH¢140.41 billion in 2023 to GH¢215.06 billion in 2024 — a significant expansion that underscores the growing size and complexity of its balance sheet even as profitability falters.
Fragile recovery or deeper troubles?
While the GH¢4.02 billion improvement in the Bank’s equity position may indicate a gradual path to recovery, the underlying factors behind the GH¢9.49 billion loss raise serious concerns.
First, the growing cost of monetary policy tools such as open market operations — which are vital for managing inflation, suggests the Bank is spending heavily to stabilise a still-fragile economy.
The continued depreciation of the cedi and the pressures from Ghana’s external debt restructuring also place the Bank under unrelenting financial strain.
Second, the exchange rate-related losses, particularly from the Gold-for-Oil programme, cast doubt on the viability of that flagship initiative, which has so far failed to deliver promised foreign exchange savings.
Third, the repeated losses and persistent negative equity — now in excess of GH¢61 billion — may reduce the Bank’s independence and credibility, especially as it is a lender of last resort and the steward of monetary policy.
Prolonged losses could undermine confidence in the central bank, both domestically and among international investors.
As Ghana continues its engagement with the International Monetary Fund (IMF) under a $3 billion support programme, the Bank’s financial condition will be under scrutiny.
Continued losses may constrain its ability to respond to macroeconomic shocks or finance government operations without resorting to inflationary means.
The BoG’s 2024 results confirm that while the institution is showing incremental signs of recovery in its equity position, its operational losses remain substantial and are largely rooted in government-linked programmes and a volatile macroeconomic environment.
Whether these losses are temporary or symptomatic of a deeper structural problem will depend on sustained fiscal discipline, reduced central bank financing of government deficits, and a narrowing of forex market imbalances.
