{"id":2633,"date":"2026-04-30T18:52:30","date_gmt":"2026-04-30T18:52:30","guid":{"rendered":"https:\/\/parliamentnews360.com\/?p=2633"},"modified":"2026-04-30T20:56:03","modified_gmt":"2026-04-30T20:56:03","slug":"majority-caucus-defends-bogs-2025-losses-says-cost-was-real-result-was-real-as-economy-stabilizes","status":"publish","type":"post","link":"https:\/\/parliamentnews360.com\/index.php\/majority-caucus-defends-bogs-2025-losses-says-cost-was-real-result-was-real-as-economy-stabilizes\/","title":{"rendered":"Majority Caucus Defends BoG’s 2025 Losses, Says \u201cCost Was Real, Result Was Real\u201d as Economy Stabilizes"},"content":{"rendered":"\n

ACCRA, April 30, 2026 \u2014 The Majority Caucus in Ghana’s Parliament has defended the costs incurred by the Bank of Ghana on its books in 2025, arguing that deliberate policy actions to stabilize the economy produced measurable results including a stronger cedi, lower inflation, record reserves, and surging consumer confidence.<\/strong><\/p>\n\n\n\n

The Bank of Ghana says GHS 15.6 billion in operating costs and a GHS 35 billion addition to negative equity in 2025 were \u201cthe cost of producing the outcomes that you are living through currently,\u201d pointing to a 41% cedi appreciation, record $14.5 billion reserves, and inflation down to 3.2% as evidence.<\/p>\n\n\n\n

Speaking at a press briefing in Parliament on Thursday after the release of the Bank\u2019s 2025 financials, a member of the Majority Caucus on the Finance Committee in Parliament, Hon. Atta Issah said the headline costs reflected \u201cthe cost of producing the outcomes that you are living through currently.\u201d <\/p>\n\n\n\n

\u201cThe institution carries them on these books. The country receives the benefits. The Bank of Ghana had to absorb the cost but the country \u2014 you and I \u2014 are all benefiting from that,\u201d the Sagnarigu Member of Parliament said.<\/p>\n\n\n\n

Key Macroeconomic Gains Cited
The Bank pointed to several indicators to show the impact of its interventions: <\/p>\n\n\n\n

T-Bill rates collapsed: The 91-day Treasury bill rate fell from 35.2% in 2022 to 9% as of February 2026. <\/p>\n\n\n\n

Cedi rebound: After losing 90% of its value in 2024, the cedi \u201cgained its strength of 41% in 2025\u201d and was named \u201cthe strongest currency of any emerging market in the world in 2025.\u201d<\/p>\n\n\n\n

Record reserves: International reserves grew from $9.1 billion at end-2024 to $13.8 billion at end-2025, and stood at $14.5 billion as of February 2026 \u2014 \u201cthe highest reserve Ghana has ever recorded in history.\u201d<\/p>\n\n\n\n

Rate cuts: The policy rate was cut from 27% at end-2024 to 14.14% as of March 2026. Average lending rates fell from 30.2% to 17.7%, creating \u201ccheaper loans for small business owners trying to expand, farmers buying inputs, traders who borrow to stock shops, and young couples buying for the first time.\u201d<\/p>\n\n\n\n

Debt and growth: Public debt fell from 62.5% of GDP to 45% of GDP. The economy grew by 6.56% in 2025 against a projected 4%. <\/p>\n\n\n\n

Confidence surge: Consumer confidence increased from 79.2 percentage points to 111.7 percentage points as of January 2026. \u201cBusinesses and consumer confidence are at record highs,\u201d Hon. Issah said.<\/p>\n\n\n\n

\u201cThree Things Drove the Cost\u201d
The Bank attributed its 2025 headline costs to three measurable interventions:<\/p>\n\n\n\n

1. Fighting inflation: The cost of mopping up excess liquidity rose from GHS 8.6 billion in 2024 to GHS 16.7 billion in 2025. \u201cThe bigger you spend, the bigger your results,\u201d the MP said. Inflation fell from 23.4% to about 13.2% in 2025 \u2014 an 18 percentage point drop. \u201cIn 2024 with a smaller spend, inflation barely moved. In 2025 with a larger spend, inflation fell.\u201d<\/p>\n\n\n\n

2. Building reserves via gold purchases: The accounting cost of the Gold Purchase Programme rose from GHS 5.7 billion in 2024 to GHS 9 billion in 2025. The programme accumulated \u201capproximately 111 tons of gold in 2025, up from less than a ton in 2021.\u201d <\/p>\n\n\n\n

\u201cThe cost was real and the result was real as well,\u201d he stressed.<\/p>\n\n\n\n

Counterfactual Warning
The Bank argued that without these interventions, Ghana would still face high inflation, a weakening cedi, depleted reserves, and lending rates above 30%.<\/p>\n\n\n\n

\u201cConsider where we would be today had this not been done,\u201d the MP said. <\/p>\n\n\n\n

\u201cInflation would have still been high at about 23.8%. Cedi would have still been weakening week after week. Reserves running lower, lending rate above 30%.<\/p>\n\n\n\n

\u201dThis, he noted, was happening in a global environment of \u201cwar, trade tariffs reshaping the international ecosystem, capital flights from emerging markets,\u201d with other economies in the region \u201cstill struggling with all these pressures.\u201d \u201cGhana is still resilient and not affected by that. The Bank built the room we can now have to navigate this moment,\u201d he said.<\/p>\n\n\n\n

Long-term Planning Returns
The official added that stability had restored long-term planning. \u201cFixed contracts and three-year investment and hiring plans became viable, and that\u2019s why you see a lot of development going on in the Bank of Ghana.\u201d<\/p>\n\n\n\n