Ghana’s Ruling MPs Reject Claim Central Bank is Insolvent 

Majority says reserve management, not accounting tricks, drove $650 million gain as debate intensifies over central bank losses

Ghana’s ruling party lawmakers have rejected opposition claims that the Bank of Ghana is “policy insolvent,” defending a reported gold-related gain as a normal outcome of reserve management rather than a one-off accounting move.

The dispute follows a press conference on Sunday by the parliamentary Minority led by Kojo Oppong Nkrumah, which argued that stripping out a 9.6 billion cedi gain (about $650 million) from the central bank’s 22.2 billion cedi operating income (about $1.50 billion) leaves a shortfall against open market operation costs of 16.7 billion cedis (about $1.13 billion). The opposition said this implies a deficit of roughly 4 billion cedis (about $270 million).

Responding for the Majority, Atta Issah said the opposition had mischaracterised how central banks manage their balance sheets.

“The characterisation of the GH¢9.6 billion as a falsehood simply because it arises from gold transactions is misleading. The Bank actively manages its reserve assets, including gold, as part of its core mandate. Central banks globally rebalance reserves between currencies, gold, and other instruments to optimise liquidity, safety, and returns,” he said.

Issah said gains from such portfolio adjustments are legitimate, even if they are not recurring.

“The Bank is not a speculative trader. But it is fully engaged in reserve management. When gold prices rise significantly, it is standard central banking practice to rebalance holdings and realise gains. This is prudent management, especially in a period where Ghana faced external financing constraints and exchange rate pressures,” he said.

He also rejected the opposition’s insolvency argument.

“Central banks are not commercial institutions. Policy solvency is not determined by a single year’s operating income minus expenses. It depends on the overall balance sheet, including reserves, revaluation buffers, and sovereign backing,” he said.

The Majority further dismissed claims that the central bank sold 50% of its gold reserves to mask financial distress, pointing instead to Ghana’s domestic gold purchase programme, which accumulated about 111 tonnes of gold in 2025.

Issah said the bank’s actions should be seen in the context of debt restructuring, exchange rate volatility and tighter global financial conditions.

“Active balance sheet management, including asset reallocation, is not a sign of weakness. It is a necessary tool of stabilisation. This is not evidence of collapse. It is evidence of management under pressure,” he said.

The central bank’s 2025 audited financial statements, released on May 1, showed a net loss of 15.63 billion cedis (about $1.06 billion), up from 9.49 billion cedis (about $640 million) in 2024. The bank has said it remains policy solvent and expects a return to profitability between 2026 and 2030 as interest rates ease.

Stay ahead of the stories shaping our world. Subscribe to Impact Newswire for timely, curated insights on global tech, business, and innovation all in one place.

Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.

Got a story to share? Pitch it to us at info@impactnews-wire.com and reach the right audience worldwide