The Majority in Parliament has staunchly defended the financial position of the Bank of Ghana (BoG) in light of growing concerns regarding its projected operational loss for the year 2025.
They firmly asserted that the central bank's structure and function are inherently distinct from private commercial entities, which are primarily designed to generate profit.
This defense comes after the recent publication of the Bank’s latest audited financial results, which specifically reveal an alarming operational loss of approximately GH¢15.63 billion for the financial year of 2025.
This staggering figure indicates a sharp increase from the previous year’s reported loss of GH¢9.49 billion in 2024, highlighting an approximate 65 percent year-on-year rise in losses, despite some encouraging signs of stabilisation in critical macroeconomic indicators, particularly in areas such as inflation rates and the volatility of the exchange rate.
In a detailed statement made on behalf of the Majority, the Member of Parliament for Amenfi West, Hon Eric Afful said that the financial performance metrics of the Bank of Ghana should not be evaluated through the same lens that is typically applied to commercial banks.
He stressed the importance of understanding that the financial outcomes observed for the central bank do not negatively impact its operational capacity or effectiveness.
It is crucial to emphasize that these financial outcomes do not impair the operational capacity of the Bank of Ghana, Hon Afful noted.
The Bank continues to effectively deliver on its core mandate and responsibilities.
Mr. Afful further on the role of the central bank, noting that its primary responsibility is to maintain macroeconomic stability and manage monetary policy, rather than to pursue profit generation as commercial banks do.
He pointed out that the existence of negative equity within the central bank should not be misconstrued as a sign of insolvency or financial distress.
Instead, he effectively described negative equity as merely an accounting condition, stressing that it should not be equated with any form of financial failure.
As he concluded, it was imperative to understand that central banks, including the Bank of Ghana, are fundamentally not profit-making institutions, and thus their financial positions must be interpreted within the context of their broader economic objectives and mandates.
Sompaonline.com/Bismarck Oppong