Purdue University finance professor Pat Obi acknowledges the Bank of Ghana’s (BoG) reduced losses in 2024 but cautions that its financial gains stem from non-core activities rather than operational improvements.
Reacting to the central bank’s financial statements, Prof. Obi noted a 28% decrease in operating losses—from GH¢13.23 billion (2023) to GH¢9.49 billion (2024)—yet highlighted structural concerns.
“The reported net comprehensive gain of GH¢4.02 billion largely resulted from revaluations of foreign currency, gold, and financial instruments,” Obi stated. “While improving equity, it’s concerning this didn’t originate from the BoG’s core mandate: monetary stability and inflation control.”
He identified significant pressures in the BoG’s core functions, citing GH¢8.60 billion spent on open market operations to curb inflation. “This cost raises sustainability questions amid negative equity,” he explained. Exchange rate-related losses of GH¢3.49 billion—partly linked to initiatives like Gold-for-Oil—further blurred “policy tools and fiscal obligations.”
Though the BoG’s negative equity improved from GH¢65.34 billion (2023) to GH¢61.32 billion (2024), Obi stressed this reflected accounting adjustments, not operational efficiency. “Gains offer short-term relief, but resilience must come from core monetary operations,” he advised, urging structural reforms for policy effectiveness and transparency.
“Progress should stem from institutional improvements, not forex fluctuations or non-core activities,” he concluded, emphasizing alignment with the BoG’s core mission of price stability and long-term resilience.
The assessment surfaces as Ghana navigates post-debt crisis economic recovery, with central bank operations under intensified scrutiny for sustainable fiscal management.
