Bank of Ghana reports GHS10.5 billion loss for 2023 financial year

The Bank of Ghana has disclosed a loss of GH₵10.50 billion for the financial year ending 2023.

This marks a significant reduction from the GH₵60.9 billion loss reported in 2022, which was primarily due to the impairment of its holdings of marketable government stocks and non-marketable instruments during the domestic debt exchange programme.

The primary factor behind the 2023 loss was a GH₵6.7 billion increase in total interest expenses on the Bank’s open market operations. These operations were pivotal in managing excess liquidity within the economy and facilitating the disinflation process as part of a broader macroeconomic adjustment programme.

Despite the substantial loss, the Bank highlighted that these open market operations yielded positive results, contributing to a notable decrease in inflation to 23.2% by the end of 2023, down from 54.1% at the end of 2022.

Total operating expenses for 2023 stood at GH₵19.2 billion, a considerable decrease from the GH₵66.9 billion recorded in 2022. This reduction is attributed to lower impairment charges on loans and advances, as well as the Bank’s holdings of Government of Ghana securities.

As of December 31, 2023, the Bank of Ghana and its subsidiaries reported total liabilities exceeding total assets by GH₵65.36 billion. Consequently, no funds were allocated for reserve appropriation, as the reserve amount was in deficit.
In its 2023 Annual Report and Financial Statement, the Central Bank emphasized its ability to generate sufficient realized income to cover the costs associated with monetary policy operations, reaffirming its policy solvency. The Board of Directors and Management stated that the policy solvency outcome for 2023 aligns with the perspective held in 2022.