The Bank of Ghana (BoG) has sought to reassure the public following growing concerns about potential losses in its operations, ahead of the release of its 2025 financial statements.
In a video explainer clarifying the role and mandate of the central bank, the BoG emphasized that its primary objective is not profit-making, but the promotion of price and financial stability.
“Unlike commercial banks or private enterprises, the core objective of central banks and monetary authorities is to provide the public good of maintaining price and financial stability,” the statement said.
The Bank of Ghana Act, 2002 (Act 612) outlines the statutory objects of the central bank, including maintaining price stability, promoting economic growth and development, ensuring the efficient operation of the banking and credit system, and contributing to overall financial stability in the country. Specifically, the BoG targets an inflation rate of 8% ±2% over the medium term.
The central bank explained that its policy interventions—such as mopping up excess liquidity from the economy—can sometimes lead to accounting losses, but these losses are measures taken in pursuit of long-term economic stability rather than short-term profits.
The BoG also addressed concerns about its foreign currency holdings, which are crucial for stabilizing the national currency, meeting international obligations, and protecting the economy from external shocks.
“When the national currency appreciates, the same amount of foreign assets translates into a lower amount in local currency compared to the previous year,” the explainer noted.
According to the bank, this accounting effect, known as a translation loss, does not represent money spent or wasted in operations but can affect the bank’s balance sheet.
The bank concluded by stressing that monetary policy effectiveness, rather than profitability, is the true measure of its performance.
“What truly matters is how effectively monetary policy achieves its objectives, not whether the institution records a profit.”
