Minority claims BoG ‘policy insolvent’, says gold sales conceal deficit

The Minority in Parliament has described the Bank of Ghana (BoG) as “policy insolvent,” arguing that the central bank can no longer sustain its monetary operations without relying on exceptional measures.

At a press briefing in Accra on Sunday, May 3, the Ranking Member on Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, said the claim is based on an analysis of the BoG’s 2025 audited financial statements, which he believes present a weaker reality than officially suggested.

The Minority questioned the Bank’s reported policy solvency, noting that while the accounts show operational income of GH¢22.2 billion against sterilisation costs of GH¢16.7 billion indicating a surplus they include a one-off gain of GH¢9.6 billion from gold sales.

According to the caucus, removing this non-recurring income reduces operational earnings to GH¢12.7 billion, resulting in an estimated GH¢4 billion shortfall when compared to the cost of open market operations. They argue this points to underlying policy insolvency.

The group further alleged that the gold sales were used to artificially boost revenue and mask the Bank’s true financial position, warning that reliance on asset disposals is not a sustainable strategy.

They also attributed the situation to what they described as costly policy decisions, including the adoption of more expensive liquidity management tools, which they say have significantly increased interest payments reportedly exceeding GH¢14 billion in 2025.

The Minority cautioned that such financial strain could undermine the Bank’s ability to fulfil its mandate, including maintaining price stability and supporting the economy, and warned that a government bailout could become necessary if corrective steps are not taken.

Additionally, they criticised what they see as attempts to downplay the severity of the Bank’s financial challenges, arguing that recent figures reflect a deterioration rather than improvement.

The caucus indicated that it will soon propose measures aimed at restoring the Bank’s financial stability, stressing the need for urgent action to safeguard the integrity and sustainability of the central bank.