The Bank of Ghana recorded a loss of GHS60.6 billion in 2022 as a result of the impairment of the Government of Ghana’s holdings of securities, which totaled GH48.45 billion, the impairment of loans and advances made to quasi-government and financial institutions, totaling GH6.12 billion, and the depreciation of the cedi, which resulted in a net exchange loss of GH5.27 billion.
Subscribe to our newsletter!
The loss was caused by the Domestic Debt Exchange Program of the Government of Ghana.
The BoG claims that its Board of Directors and Management evaluated the effects of the negative net worth position on policy solvency as well as the group’s capacity to continue to make enough money to pay for its monetary policy operations and other operational expenses.
The BoG claims that its Board of Directors and Management evaluated the effects of the negative net worth position on policy solvency as well as the group’s capacity to continue to make enough money to pay for its monetary policy operations and other operational expenses.
The directors believe that the Central Bank will continue to operate as a going concern due to a number of factors supported by expectations of a better macroeconomic environment and specific policy actions aimed at strengthening its balance sheet.
The Central Bank described several steps that it thought would aid in recovery in its Annual Report.
Included among them is the retention of profits to aid in capital reconstruction until equity firmly returns to the positive region.
refraining from financially supporting the budget of the Ghanaian government. A Memorandum of Understanding on Zero Financing of the Budget was signed on April 26, 2023, by the Bank of Ghana and the Ministry of Finance, signaling that action has already been taken in this regard;
taking quick action to boost efficiency and earnings by optimizing the Bank of Ghana’s investment portfolio and operating cost mix
determining if the government may need to provide recapitalization support in the medium- to long-term
The Board of Directors and Management further stated that they believed that “ongoing efforts to restore macroeconomic stability and debt sustainability, in addition to long-term efforts to build reserves, provide enough basis for continued operational policy efficiency existence for the foreseeable future.”
