A member of the Finance Committee of Parliament and MP for Sagnarigu, Attah Issah, says the Bank of Ghana’s (BoG) negative equity position should not be interpreted as policy insolvency.
Speaking on Joy FM’s Newsnight on Monday, May 4, he said that the central bank remains capable of carrying out its core mandate despite the figures being discussed.
“If you say ‘negative equity’, it doesn’t mean the Bank is policy insolvent. The Bank is not in the business of making profit,” he said.
He explained that the mandate of the Bank of Ghana is clearly defined and focused on stability rather than profit-making.
“As in the mandate of the Bank of Ghana in section 9, the idea of the Bank of Ghana is to stabilise the price and then make sure that we manage our reserves and overall economic stability. That has been achieved based on the prevailing macroeconomic indicators,” he stated.
Mr Issah also sought to clarify how the GH¢96.3 billion negative equity figure was arrived at, noting that it is cumulative rather than a one-off loss.
“When they say the negative equity position of the Bank of Ghana, this 96.3 billion, it is not a one-off negative equity; it is a cumulative concept,” he explained.
He broke down the figures further.
“At the end of 2024, the total negative equity of the Bank was 61.3 billion. This year, if you add the total loss plus the other comprehensive income, it gives you 35 billion. When you add it to the 61 billion, that gives you the 96.3 billion,” he said.
According to him, the public must understand that the figure reflects an accumulation over time.
“So let Ghanaians know that the 96.3 billion negative equity is a result of the 61.3 billion in 2024 plus the 35 billion in 2025,” he added.
Touching on the factors behind the losses, Mr Issah said the costs were largely driven by policy actions aimed at stabilising the economy.
“The OMO [Open Market Operations] cost was high because we wanted to tame inflation within the 8 to 10 per cent band, which we have achieved,” he said.
He added that efforts to stabilise the currency and build reserves have also delivered results.
“We also wanted to make sure we stabilise the currency… and build our reserve from 9.1 billion to 13.35 billion, which we have achieved,” he noted.
Mr Issah further outlined measures under a medium- to long-term programme aimed at easing pressure on the Bank’s balance sheet.
He pointed to the reserve accumulation programme passed in February 2026, which changes how gold-related transactions are accounted for.
“The cost incurred in accessing the reserve position through the gold board will no longer sit on the books of the Bank of Ghana. It will now sit on the books of the off-takers, and the Bank of Ghana gets reserves out of that,” he explained.
He also indicated that the high costs associated with tight monetary policy would reduce going forward.
“If you look at the 16.27 billion that was occasioned through the tight monetary policy… that will no longer feature because inflation has already come down below even the IMF projection and that of the Government of Ghana,” he said.
On exchange rate-related losses, he said recent stability in the currency should limit future pressures.
“Once we are now seeing some level of stability in the exchange rate, it means that there will not be so many exchange losses,” he added.
Drawing comparisons with global institutions, Mr Issah noted that negative equity is not unique to Ghana.
“The European Bank and the Federal Reserve Bank in America all run negative equity, but they are still policy solvent,” he said.
He expressed confidence that ongoing policy measures will prevent similar losses from recurring.
“Moving forward, our expectation is that through the Ghana Revenue Acceleration and Accumulation Policy, we will no longer see these debts on the books of the Bank of Ghana,” he stated.
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