The Bank of Ghana has announced a loss of GH₵10.50 billion for the financial year ending 2023. This significant loss was primarily attributed to a substantial increase in total interest expenses on open market operations by the Central Bank.
The expenses on open market operations rose by GH₵6.7 billion during the period under review, which was incurred to manage excess liquidity in the economy and support the disinflation process.
This effort was part of the broader macroeconomic adjustment programme aimed at stabilizing the economy. As of December 31, 2023, the Bank of Ghana and its subsidiaries had total liabilities exceeding total assets by GH₵65.36 billion.
The total operating expenses for 2023 were GH₵19.2 billion, which represents a notable decline from the GH₵66.9 billion recorded in 2022. This reduction was attributed to lower impairment charges on loans and advances and the Bank’s holdings of Government of Ghana securities.
Despite the significant loss, the Bank of Ghana has emphasized that this is a remarkable improvement compared to the GH₵60.9 billion loss posted in 2022. The previous year’s loss was largely due to the impairment of the Bank’s holdings of marketable government stocks and non-marketable instruments during the domestic debt exchange programme.
The Bank of Ghana has explained that the Open Market Operations activity, which accounted for a significant portion of the loss incurred, yielded positive results. The aggressive mopping up operations contributed to slowing down inflation to 23.2 percent by the end of 2023, significantly down from the rate of 54.1 percent at the end of 2022.
The Bank’s efforts to manage excess liquidity and support the disinflation process have been acknowledged as a crucial step towards achieving economic stability. The reduction in inflation is a testament to the effectiveness of these measures.
The Bank of Ghana has reaffirmed its commitment to maintaining price stability and ensuring a stable financial system. The Bank will continue to implement policies aimed at promoting economic growth and development.
While the Bank of Ghana recorded a significant loss in 2023, it is important to note that this loss was largely due to necessary measures taken to stabilize the economy. The Bank’s efforts have yielded positive results, and the reduction in inflation is a testament to their effectiveness.
The Bank of Ghana remains committed to its mandate and will continue to work towards promoting economic growth and development in Ghana.
