Bank of Ghana Records GH¢15.6 Billion Loss in 2025 as Gold Sales Avert Deeper Crisis

The Bank of Ghana (BoG) has reported a significant financial loss of GH¢15.63 billion for the 2025 financial year, a sharp increase from the GH¢9.49 billion recorded in 2024. Despite this headline figure, the central bank maintains that its operations remain resilient, largely due to the strategic impact of the Domestic Gold Purchase Programme (DGPP). Financial analysis indicates that without the sale of approximately 870,000 ounces of refined gold—valued at roughly $3.6 billion—the BoG’s losses would have ballooned to nearly GH¢33.2 billion. This financial performance reflects the ongoing economic costs of the bank's aggressive fight against inflation and efforts to stabilize the cedi, which necessitated expensive monetary interventions.

Central bank officials and members of the Monetary Policy Committee, such as Prof. Ebo Turkson, have emphasized that these losses are "policy-driven" rather than a result of mismanagement. The bank’s Head of Gold Management, Paul Bleboo, clarified that the costs incurred under the DGPP should be viewed as necessary policy expenditures aimed at bolstering foreign reserves. To manage inflation, which peaked at 54% in late 2022, the BoG implemented rigorous liquidity mop-up operations and raised policy rates, leading to substantial interest costs. However, the DGPP provided a critical buffer; the bank realized GH¢9.57 billion in profit from gold transactions and released GH¢7.99 billion from past unrealized gains, totaling GH¢17.56 billion in financial relief for the year.

The financial results have drawn criticism from political figures, notably Dr. Gideon Boako, who described the loss as a "policy failure" and a "new low" for the institution. Concurrently, the Ghana Chamber of Mines has called for greater transparency, urging the central bank to publish a full breakdown of foreign exchange inflows from the mining sector. The Chamber argues that current reporting, which focuses primarily on direct sales to the BoG, overlooks significant flows handled by commercial banks. They contend that a more comprehensive data set is vital for sound policymaking and to accurately reflect the mining industry's true contribution to the national economy.

Looking ahead, the Bank of Ghana is navigating a complex path toward recovery, currently holding a negative equity of GH¢93.82 billion. A government-backed recapitalization plan spanning 2026 to 2032 is expected to restore positive equity over the medium term. In a strategic shift to manage concentration risk, the bank has also begun trimming its gold bullion holdings to ensure they do not exceed 20% of total foreign reserves, reinvesting proceeds into more liquid assets. While inflation uncertainty and currency volatility remain persistent risks, the central bank’s international reserves—which rose to US$13.8 billion in 2025—suggest a strengthening capacity to maintain macroeconomic stability despite current fiscal challenges.