BoG 'losses' reflect policy costs, not mismanagement - Senyo Hosi

Finance and economic policy analyst, Senyo Kwasi Hosi, has defended the Bank of Ghana’s 2025 financial “losses,” arguing that they represent the cost of economic stabilisation rather than mismanagement.

In a detailed post shared on Facebook on May 4, 2026, Hosi said the debate over the Bank’s reported GH¢15.6 billion loss has been misleading, insisting that the figure reflects policy actions taken to stabilise inflation and restore macroeconomic balance.

“What the Bank recorded was not an economic loss. It was the financial cost of delivering one of the most dramatic stabilisation turnarounds in Ghana’s recent history,” he wrote.

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According to him, the central bank’s aggressive monetary tightening helped drive reserve money growth down sharply, which in turn contributed to a sustained decline in inflation.

“This is the clearest demonstration of decisive monetary policy in action,” he noted.

He also pointed to data showing inflation falling for 13 consecutive months, from 23.8% to 5.4%, and further down to 3.2% by March 2026.

Hosi explained that the reported losses were largely driven by policy interventions, including GH¢16.7 billion in Open Market Operations (OMO) costs used to absorb excess liquidity, GH¢9.1 billion under the Domestic Gold Purchase Programme (DGPP), and GH¢29.1 billion in foreign exchange revaluation effects.

“These are not commercial losses. They are policy costs; the price of reversing years of fiscal slippages and monetary expansion,” he stated.

He further argued that the foreign exchange revaluation charge had been misunderstood, stressing that it was an accounting adjustment rather than an actual cash loss.

“The cedi strengthened 40.7% in 2025… no reserves were lost. No cash left the Bank,” he explained.

On the gold purchase programme, Senyo Hosi said it significantly strengthened Ghana’s external position, increasing reserves from $9.1 billion to $13.8 billion and improving import cover to 5.7 months.

“The DGPP’s GH¢9.1 billion cost must likewise be viewed alongside its outcome,” he added.

He concluded that the broader economic outcomes, including single-digit inflation, a stronger cedi, lower import costs, and improved reserves, show that the Bank’s actions were effective.

“The ‘loss’ was the price of stability; and it worked,” he concluded.

See the full post below:

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