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Accra, Ghana – June 12, 2025 —
The Bank of Ghana’s (BoG) cumulative financial losses since the 2007 redenomination exercise have reached GH¢82.79 billion, a figure that is eight times the total profit recorded over the same period.
The redenomination, which involved knocking off four zeros from the Ghanaian currency, was introduced to simplify transactions and strengthen confidence in the cedi. However, subsequent data has revealed a significant erosion in the central bank’s financial position over the past 17 years.
Between 2007 and 2024, the BoG registered a cumulative profit of only GH¢10.35 billion. In comparison, the GH¢82.79 billion in losses accumulated during this period represents a stark imbalance in the bank’s fiscal trajectory. The losses are largely attributed to the impact of debt restructuring under the Domestic Debt Exchange Programme (DDEP), currency depreciation, and other macroeconomic pressures.
Recent years have seen especially high losses. In 2022 and 2023 alone, the BoG reported more than GH¢60 billion in losses, driven primarily by the impairment of government bonds and declining foreign exchange reserves. The weakening of the cedi against major international currencies further compounded the situation.
Despite these setbacks, the BoG has maintained that its policy interventions were necessary to preserve macroeconomic stability during periods of crisis, including the COVID-19 pandemic and global inflationary shocks. It has also indicated efforts are underway to recapitalize and strengthen its balance sheet in line with international best practices.
Economic observers and fiscal policy analysts continue to track the implications of the central bank’s losses on Ghana’s financial system. Many believe the scale of impairment reflects deeper structural challenges in public finance management and the relationship between the central bank and government borrowing.
The Bank of Ghana remains a key player in Ghana’s economic recovery agenda, with stakeholders closely monitoring its reforms and policy directions as the nation works toward sustainable growth and macroeconomic stability.
Multicdbonline.com will continue to provide accurate and timely updates on Ghana’s financial landscape.
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