The Bank of Ghana (BoG) has recorded an operating loss of GH¢9.49 billion for the 2024 financial year, compared to a restated operating loss of GH¢13.23 billion in 2023.
In a statement accompanying the release of its 2024 Financial Statements, the BoG noted that this reflects a net gain of GH¢4 billion over the previous year’s financials, which posted a net loss of GH¢9.19 billion.
Reasons for the 2024 Operating Loss
The GH¢9.49 billion operating loss stems from total operating income of GH¢9.40 billion, which fell short of total operating expenses amounting to GH¢18.89 billion.
Key Drivers of the 2024 Operating Loss
According to the financial statement, the main contributors to the 2024 loss include:
Cost of Open Market Operations: GH¢8.60 billion
Revaluation and Exchange Losses: GH¢3.49 billion, including GH¢1.82 billion in exchange losses related to the Government’s Gold-for-Oil Programme
Currency Issue Expenses: GH¢1.01 billion in 2024, up from GH¢0.69 billion in 2023
Change in Accounting Treatment: Adjustments to how foreign exchange gains and losses are reported, particularly involving the revaluation of the Bank’s assets and liabilities in gold, Special Drawing Rights (SDRs), and foreign securities
Summary of Financial Position
The BoG noted, “The 2024 financial year saw improvements in the bank’s financial performance and position, as evidenced by the reduced loss of GH¢9.49 billion and a GH¢4.02 billion improvement in equity, which closed the year at a negative GH¢61.32 billion.”
The Bank emphasized that the release of the financials reflects its compliance with statutory obligations and its ongoing commitment to transparency, accountability, and sound financial governance.
“The Bank is committed to maintaining price and financial stability and creating an enabling environment for businesses and individuals to thrive,” it added.
History of BoG Financials
The Bank of Ghana recorded a loss of GH¢10.5 billion in 2023, but this was later restated to GH¢13.23 billion in the 2024 report. This reflects a significant improvement from the GH¢60.8 billion loss posted in 2022.
The 2023 loss was largely attributed to increased interest expenses on the BoG’s Open Market Operations, which rose by GH¢6.7 billion.
Turnaround Strategies
To address its persistent losses, the Bank announced a series of reforms in 2023. These include:
Ceasing Monetary Financing of Government Budget: In line with the Memorandum of Understanding on zero budget financing signed with the Ministry of Finance
Optimising Investments and Costs: Policy measures aimed at improving efficiency and profitability by optimising the investment portfolio and operational cost structure
The financial results also revealed that BoG and its subsidiaries’ total liabilities exceeded total assets by GH¢65 billion, up from GH¢54.5 billion in 2022.