Finance and tax analyst Nelson Cudjoe Kuagbedzi has pushed back against criticism of the Bank of Ghana’s 2025 financial losses, insisting the GH¢15.6 billion deficit reflects the cost of stabilising the economy rather than financial mismanagement.
Commenting on the central bank’s latest audited accounts, Mr Kuagbedzi said the Bank of Ghana’s core mandate is to maintain price stability and protect the financial system—not generate profits.
He cited Section 3 of the Bank of Ghana Act, 2002 (Act 612), which outlines the central bank’s responsibility to maintain stability in the general level of prices, ensure currency stability and safeguard Ghana’s financial sector.
“The Bank of Ghana does not exist to be driven by profit,” he stressed.
According to him, the central bank aggressively deployed monetary policy tools in 2025 to improve economic conditions, and those interventions came with unavoidable financial costs.
He pointed to Ghana’s sharp decline in inflation—from about 23.8 percent in 2024 to roughly 5 percent in 2025—as evidence that the Bank’s policies delivered meaningful economic gains.
Mr Kuagbedzi explained that reducing inflation required the central bank to absorb excess liquidity through open market operations, a process that significantly increased operational costs.
He also highlighted the Bank’s efforts to build foreign reserves through gold purchases, noting that such strategies create accounting pressures on the institution’s balance sheet.
Additionally, he said the strengthening of the cedi reduced the local currency value of the Bank’s foreign assets, further contributing to reported losses.
“A stronger cedi mechanically reduces the cedi value of the dollars and gold the bank holds,” he explained.
Despite concerns over the losses, Mr Kuagbedzi maintained that the figures largely reflect accounting adjustments and should not be interpreted as a threat to the Bank’s operational strength.
He expressed confidence that the losses could reverse as economic conditions continue to improve and stabilise.
