The Bank of Ghana (BoG) has assured the public that it is still financially capable of carrying out its core responsibilities, despite recording an operating loss of GHS15.6 billion and posting negative equity for 2025.

In its latest financial statement, the central bank explained that it remains “policy solvent.” This means it still has the ability to implement key monetary policies such as controlling inflation and managing interest rates without needing emergency financial support from the government.

According to the Bank, this position is backed by its capacity to generate income through its monetary policy operations. These include open market operations, which are used to manage liquidity in the economy, stabilise inflation, and address exchange rate pressures.

The BoG noted that although current economic conditions require continued intervention, it is confident in its ability to finance these activities internally. It added that over time, these measures are expected to improve its financial standing.

The Bank further explained that its income outlook will benefit from better net interest earnings and reduced costs linked to reserve accumulation. It also expects to return to profitability in the coming years.

In addition, returns from Ghana’s external reserves are projected to support the Bank’s income generation. With global interest rates remaining relatively high, the central bank believes it will continue to earn sufficient returns to sustain its operations.

The BoG also pointed out that as monetary policy gradually shifts towards easing, pressure on its earnings is expected to reduce. This, it said, will help stabilise its financial performance.

Despite these assurances, the Bank acknowledged concerns about its equity position. It revealed that its negative equity widened to GHS93 billion in 2025. This was largely due to the impact of the Domestic Debt Exchange Programme and the cost of monetary policy operations over the past two years.

To address this, the government has committed to restoring the Bank’s capital base, as required under the Bank of Ghana Act, 2002 (Act 612), as amended. A phased recapitalisation plan has been agreed between the Ministry of Finance and the central bank.

Under this plan, the government will provide financial support in the form of cash or instruments from 2026 to 2032. The Bank expects this process to gradually rebuild its capital and return it to a positive equity position by 2032.

The BoG believes this recapitalisation programme will strengthen its financial resilience and reduce its exposure to short-term income pressures. It also aims to restore the Bank’s reserves to a more stable and prudent level over time.

Overall, the central bank maintains that while its current financial position reflects recent economic challenges, it remains capable of delivering on its mandate and supporting Ghana’s economic stability.