GH¢44bn BoG Loss Misleading – Majority

The Majority Caucus in Parliament has strongly defended the Bank of Ghana’s 2025 audited financial statements, rejecting allegations by the Minority that the central bank manipulated its accounts, concealed losses and pursued misguided monetary policies that worsened the country’s economic situation.

In a statement issued on Monday, May 4, 2026 by the MP for Sagnarigu and a Member of the Finance Committee, Atta Issah, the Majority accused the Minority of misinterpreting technical accounting data and central banking practices, warning that such claims risk misleading the public and undermining confidence in critical state institutions.

According to the Majority, the Minority’s assertion that the Bank of Ghana is “policy insolvent” due to its reliance on a GH¢9.6 billion gain from gold sales is fundamentally flawed.

The caucus argued that gains from gold transactions are a legitimate part of reserve management and are standard practice among central banks worldwide.

“The Bank is not speculating in gold, but prudently rebalancing its reserves to ensure liquidity and macroeconomic stability in a challenging environment,” the statement said, adding that non?recurring income does not make such gains illegitimate.

The Majority also dismissed claims that the Bank rushed to sell half of its gold reserves to hide financial distress, noting that the audited accounts show no evidence of distress sales and that Ghana continues to pursue policies aimed at increasing gold reserves through domestic purchases.

On the widely cited figure of a “true loss” of up to GH¢44 billion, the Majority said the Minority had combined accounting categories that are internationally treated as separate.

It explained that the officially reported loss for 2025 stands at GH¢15.63 billion, as audited, while other comprehensive income largely reflects unrealised, non?cash valuation changes driven by exchange rate movements and asset price fluctuations.

“These valuation effects are not operating losses and cannot be added to profit or loss under any recognised accounting framework,” the statement said, describing the Minority’s calculations as methodologically flawed and misleading.

Addressing concerns about the Bank’s negative equity position, which rose to about GH¢93 billion, the Majority acknowledged the figure, but stressed that central banks are not commercial entities and can operate effectively with negative equity due to statutory backing and sovereign support.

It attributed the increase to cumulative effects of debt restructuring, exchange rate revaluations, and policy measures taken to stabilise the economy during and after the recent crisis.

The Majority further rejected suggestions that the Bank’s accounts were improperly prepared outside International Financial Reporting Standards (IFRS).

It clarified that the financial statements follow a legally mandated accounting framework under the Bank of Ghana Act, which modifies IFRS treatment for certain monetary policy items.

The Caucus emphasised that the external auditors issued an unmodified opinion, confirming that the statements fairly present the Bank’s financial position within the stated framework.

On monetary policy, the Majority defended the GH¢16.7 billion cost incurred from open market operations in 2025, describing it as the unavoidable cost of disinflation in a high?interest?rate environment.

“When inflation is high, sterilising excess liquidity is expensive. That cost is not a policy failure but the price of restoring stability”, the statement noted.

It also challenged claims that the abolition of the dynamic Cash Reserve Ratio and the cedi equivalent reserving requirement led to higher costs, arguing that these regulatory tools are blunt, distortionary and unsuitable for sustained liquidity management during a disinflation phase.

Market?based instruments, the Caucus said, offer greater precision, transparency, and policy credibility.

Responding to accusations that interest payments to banks amounted to a wealth transfer from the public to private institutions, the Majority maintained that such payments are the normal mechanism through which monetary policy operates, not discretionary handouts.

It added that without aggressive liquidity control, inflation would have remained elevated, eroding purchasing power and worsening economic hardship.

While acknowledging the difficult living conditions facing many Ghanaians, the Majority insisted that macroeconomic stabilisation is a necessary first step toward recovery.

“You cannot have sustainable jobs, affordable credit, and business growth without  first stabilising inflation and the exchange rate,” the statement said, pointing to declining inflation and currency stability as signs that the foundation for recovery is being laid.

The Majority accused the Minority of selective reading and political framing, urging the public to rely on the audited accounts and established economic principles rather than alarmist interpretations.

“The issue here is not transparency. It is interpretation. That interpretation must be grounded in facts, not politics,” the Majority asserted.

By Stephen Larbi

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