BoG's GH¢10.5 billion loss in 2023 sends bad signal to the market – UG Professor

Professor Lord Mensah, a Senior Lecturer at the University of Ghana Business School (UGBS), has expressed concern over the GH¢10.50 billion loss reported by the Bank of Ghana (BoG) for the financial year ending 2023.

He explained that the loss sends a bad signal and may decrease confidence in the market.

According to him, this will also lead to further currency devaluations or capital outflows.

In an X post on June 1, 2024, he stated “BoG's GH¢10.5 billion loss, bad signal to the market.

“The loss may decrease confidence in the market. Market players may lose confidence in BoG's ability to manage the economy, leading to further currency devaluations or capital outflows.”

The Bank of Ghana has reported a GH¢10.5 billion loss for the financial year ending 2023, attributing the significant deficit primarily to an increase in total interest expenses on its open market operations.

In its 2023 Annual Report and Financial Statement, the Bank of Ghana clarified that no funds were allocated for reserve appropriation, as the reserve amount was in deficit as of December 31, 2023.

Despite this, the central bank emphasized its policy solvency, assuring its ability to generate sufficient realized income to cover the costs associated with conducting monetary policy operations.

BoGs GHS 10.5 billion loss, bad signal to the market. The loss may decrease confidence in the market. Market players may lose confidence in BoG's ability to manage the economy, leading to further currency devaluations or capital outflows.

— The Prof (@stigue2001) June 1, 2024

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