The newly sworn-in Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has outlined plans to address the central bank’s negative equity position caused by recent financial losses.
Speaking at his swearing-in ceremony on Tuesday, February 25, 2025, Dr. Asiama stressed the need to restore the bank’s financial health to maintain stability, credibility, and public trust.
“My sixth and last priority area is the need to reverse the Bank of Ghana’s negative equity position or the losses incurred in recent years, all to maintain financial stability, maintain the institution’s credibility, and restore public trust,” he stated.
The BoG has recorded significant losses in recent years, largely due to debt restructuring and broader economic challenges. The governor highlighted the urgency of tackling this issue through cost-cutting and strategic financial policies.
“In this vein, we will seek to re-examine the bank’s non-core operations, and I must say that some of these have already begun in the last two weeks where savings could be made. We shall adopt several austere measures to help reduce the bank’s operational costs and achieve cost efficiency,” he explained.
To restore the BoG’s financial position, Dr. Asiama assured that clear policies would be implemented to achieve a structured return to positive equity in the medium term.
“We will craft very clear policies to return the Bank of Ghana’s negative equity to positive equity in the medium term,” he added.
The BoG’s 2022 annual report revealed a GHC 60.8 billion loss, primarily due to the domestic debt exchange program, which severely impacted the bank’s balance sheet.
This financial setback has raised concerns among economic stakeholders about its long-term effects. However, despite these losses, the BoG has maintained that it remains solvent and capable of fulfilling its mandate.
Former Governor Dr. Ernest Addison previously expressed confidence in the bank’s ability to recover as economic conditions improve. Similarly, Deputy Finance Minister-designate Thomas Nyarko Ampem, during his vetting, clarified that the government is not considering using public funds to recapitalize the BoG.