Bank of Ghana Navigates GH¢15.6 Billion Loss Amid Declining Issuance Costs and Robust Domestic Borrowing

The Bank of Ghana (BoG) has reported a complex financial performance for 2025, recording a net loss of GH¢15.6 billion following a previous GH¢9.5 billion loss in 2024. This cumulative pressure has resulted in a negative equity position of GH¢93.8 billion. Despite these figures, the central bank achieved a significant operational milestone by slashing the cost of currency issuance by over 54%, reducing expenses from GH¢1.01 billion to GH¢471.4 million. This reduction was primarily driven by a 72% drop in printing and minting costs, even as the total cash in circulation rose by 17%, from GH¢71.6 billion to GH¢83.8 billion, reflecting a persistent demand for physical currency despite the growth of digital payment systems.

In the broader domestic market, the Ghanaian government demonstrated strong fiscal activity by raising GH¢20.48 billion through five Treasury bill auctions in April 2026. Investor appetite remained robust, particularly for the 91-day Treasury bill, which emerged as the most favored instrument. Simultaneously, the secondary bond market witnessed a dramatic recovery, with turnover surging by 319.43% to reach GH¢2.34 billion. This rebound was largely attributed to end-of-month portfolio rebalancing, with trading concentrated heavily in the 2031-2034 maturities. These developments indicate a resilient domestic appetite for government securities despite the challenging macroeconomic environment.

The Ghana cedi, however, continues to face significant pressure, depreciating by approximately 5.86% against the US dollar since the start of the year. To mitigate this volatility, the Bank of Ghana has intensified its Forex Intermediation Programme, selling US$1.35 billion in April alone and planning an additional US$350 million intervention to satisfy unmet auction bids. This spike in forex demand is driven largely by the energy and manufacturing sectors. Expert commentary on the BoG’s strategy remains divided; while Eric Afful, Chairman of Parliament’s Economic Committee, argues that central bank losses should be viewed as necessary policy interventions for stability rather than through a commercial lens, economist Dr. Hene Aku Kwapong warns that a weakened financial position could undermine the bank’s credibility and its ability to defend the local currency.

Furthermore, the efficiency of the BoG's gold trading operations has come under scrutiny. Joe Jackson, CEO of Dalex Finance, has called for improved operational efficiency to minimize losses and bolster investor confidence. While acknowledging that gold trading is a vital tool for currency stability and macroeconomic safeguarding, Jackson emphasized the need for transparency and continuous assessment of the program's costs. As Ghana moves forward, policymakers face the challenge of balancing the 'impossible triangle'—monetary independence, exchange rate stability, and capital controls—to ensure long-term economic recovery and institutional credibility.