A new policy review by the Institute of Economic Research and Public Policy has sounded the alarm on the financial health of the Bank of Ghana (BoG), flagging serious structural concerns. The report points to mounting losses, worsening negative equity, and rising policy costs that threaten its long term stability.
In its May 2026 presentation titled “Critical Analysis of the 2025 Financial Statements,” the institute disclosed in its Executive Warning that “The Bank of Ghana recorded a NET LOSS of GH¢15.63 billion in 2025, a 64.7% increase from 2024. Negative equity now stands at GH¢93.82 billion.”
The report sets the tone early, stating that its analysis “examines what the Annual Report does not say,” before concluding that the financial position of the central bank reflects deeper structural weaknesses.
Balance sheet deterioration
IERPP’s review of the Bank’s financial position reveals a widening imbalance between assets and liabilities. According to the report, total liabilities stood at GH¢333.5 billion against total assets of GH¢237.2 billion.
It states emphatically that “Total liabilities (GH¢333.5bn) EXCEED total assets (GH¢237.2bn) by GH¢96.3 billion. This central bank is technically insolvent by any standard commercial definition.”
The institute further describes the 2025 Annual Report as presenting “a deeply troubling picture of a central bank in sustained financial distress,” adding that “a critical reading reveals systemic failures, policy induced losses, and a deteriorating balance sheet.”
Rising costs outpace income growth
Although the Bank recorded strong growth in operating income, IERPP argues that the increase was overshadowed by even faster rising costs.
The report shows that total operating income rose to GH¢22.28 billion, representing a 136.9 percent increase, while operating expenses climbed to GH¢37.91 billion, up by 100.7 percent.
A key concern raised is the composition of this income. The institute notes that gold sales alone contributed GH¢9.57 billion, representing 43 percent of total income.
It warns that this revenue source is unsustainable, stating that “Gold sales (GH¢9.57bn) = 43% of total income. Remove this ONE TIME item… RESIDUAL LOSS → GH¢25.2bn.”
Auditors flag departures from international standards
The report also highlights concerns raised by external auditors, KPMG, who issued an emphasis of matter paragraph regarding the Bank’s financial reporting framework.
IERPP notes that the auditors flagged that the financial statements are prepared under the Bank of Ghana Act, which “DEPARTS from IFRS in critical areas,” adding that the statements “may not be suitable for another purpose.”
These departures, the institute argues, affect the treatment of gold revaluation, foreign exchange gains, and foreign securities, ultimately making “direct comparisons with other central banks and international standards impossible.”
Going concern assertion disputed
A major point of contention in the report is the Bank’s claim that it remains a going concern.
IERPP challenges this position, stating that “GH¢93.82 billion negative equity is NOT a going concern situation. Under IFRS IAS 1, going concern requires assets to exceed liabilities, they do NOT.”
The institute also criticises the recapitalisation framework, describing it as weak and uncertain. It points out that “The recapitalisation plan… has NO legally binding commitment from government to transfer actual cash or assets by specific dates,” adding that “An MOU is not an enforceable obligation.”
Furthermore, it notes that the proposed recapitalisation instruments are “non tradable, zero coupon bonds” that “will generate NO cash flow for the Bank.”
-Gold programme records losses
IERPP identifies the Domestic Gold Purchase Programme as a major source of financial strain, describing it as a concealed loss centre.
The report reveals that total losses from gold related programmes reached GH¢9.05 billion in 2025, characterising the situation as a “structural programme failure.”
It adds that despite significant trading volumes, “the Bank buys and sells gold at a net loss per transaction,” concluding that the programme effectively operates as “a structural subsidy to gold dealers and mining companies at taxpayers’ expense.”
Sterilisation costs surge sharply
The cost of monetary policy operations emerged as another major pressure point.
IERPP reports that Open Market Operations costs rose to GH¢16.73 billion in 2025, nearly doubling from GH¢8.60 billion the previous year.
Describing this as “the monster in the room,” the report explains that “Commercial banks earn GH¢16.73bn in interest from these OMO instruments… Bank PAYS this cost with NO corresponding income generation → MASSIVE LOSS.”
The balance sheet impact has been significant, with OMO liabilities tripling within a year and accounting for a growing share of total liabilities.
Exchange rate losses compound pressure
The depreciation of the cedi also contributed significantly to the Bank’s financial challenges.
According to IERPP, total exchange related losses reached approximately GH¢29 billion, combining losses recorded in profit and loss with those captured in other comprehensive income.
The report states that “the total exchange rate impact is approximately GH¢29 billion, this reflects exchange rate management FAILURE.”
Operational costs rise amid record losses
Beyond policy related costs, the institute also raises concerns about internal expenditure trends.
It finds that “Staff GREW by 12.9%… Personnel costs UP 44.4%… Even as the Bank suffered RECORD LOSSES,” describing the situation as “poor cost discipline during a financial crisis.”
Stress tests reveal deep vulnerabilities
IERPP’s stress tests suggest that the Bank’s financial position remains highly vulnerable to external shocks.
The report warns that a further depreciation of the cedi could result in “ESTIMATED ADDITIONAL LOSS FROM EXCHANGE ALONE: GH¢7 – 10 BILLION,” adding to already significant annual losses.
It also casts doubt on the feasibility of the Bank’s recovery path, noting that achieving positive equity would require “GH¢13.4bn per year for 7 years” against a current loss trajectory of GH¢15.6 billion annually, implying a required turnaround of GH¢29 billion per year.
IERPP concludes that the likelihood of this happening without major reforms is “HIGHLY DOUBTFUL.”
Call for urgent reforms
The institute proposes a series of policy reforms, including legally binding recapitalisation, restructuring of the gold programme, reduction in reliance on costly monetary operations, and adoption of international financial reporting standards.
It also calls for an immediate halt to the use of gold reserve sales to fund operations, warning that such practices are fiscally unsustainable.
“Structurally broken finances”
IERPP states: “The Bank of Ghana is not a bank in temporary difficulty. It is a central bank with structurally broken finances: negative equity of GH¢93.82 billion, record losses of GH¢15.63 billion, gold reserves being sold to fund operations, OMO costs doubling annually, and a recovery plan that is aspirational rather than legally enforceable.”
IERPP further called for greater accountability, stressing that ‘Ghana’s financial system deserves transparency. Its citizens deserve honest accounting.’
