BoG Loses GH¢60.8bn In 2022

Due to the impairment of the Government of Ghana’s securities holdings of GH¢48.45 billion, impairment of loans and advances granted to quasi-government and financial institutions amounting to GH¢6.12 billion and the depreciation of the local currency resulting in net exchange loss of GH¢5.27 billion, the Bank of Ghana recorded GH¢60.6billion loss in 2022.

The loss was occasioned by the Government of Ghana Domestic Debt Exchange Programme.

According to the BoG, its Board of Directors and Management assessed the policy solvency implications arising out of the negative net worth position and the group’s ability to continue to generate enough income to cover its monetary policy operations and other operational costs.

In the view of the directors, the Central Bank will continue to operate on a going concern basis due to a variety of factors underpinned by expectations of an improved macroeconomic situation and policy actions specifically targeted at improving its balance sheet.

In its Annual Report, the Central Bank, outlined these measures which it believed would help it recovery.

These include: Retention of profits to help rebuild capital until equity firmly returns to positive region.

Refraining from monetary financing of the Government of Ghana’s budget. In this respect, action has already been taken with a Memorandum of Understanding on zero financing of the budget signed between the Bank of Ghana and the Ministry of Finance on 26 April, 2023;

Taking immediate steps to optimise the Bank of Ghana’s investment portfolio and operating cost mix to bolster efficiency and profits; and

assessing the potential need for recapitalisation support by the government in the medium-to-long term

It furthered that the Board of Directors and Management are of the view that “continued efforts at restoring macroeconomic stability and debt sustainability in addition to long-term efforts at building reserves, provide enough basis for continued operational policy efficiency existence for the foreseeable future”.


Leave A Comment

Your email address will not be published.

You might also like
where to buy viagra buy generic 100mg viagra online
buy amoxicillin online can you buy amoxicillin over the counter
buy ivermectin online buy ivermectin for humans
viagra before and after photos how long does viagra last
buy viagra online where can i buy viagra