Following the unprecedented GHC 60 Billion loss recorded by the Bank of Ghana, the Central Bank has blamed the loss on the government’s Domestic Debt Exchange Programme (DDEP) and COCOBOD loans.

The huge loss was reported by the Bank of Ghana’s audited financial statement for the 2022 financial year. According to the statement, the Central Bank which recorded a profit of GH¢1.23 billion in the 2021 financial year has recorded a loss amounting to GH¢ 60 billion a year later.

In an attempt to explain the loss recorded by the bank, the Director of Research at the Bank of Ghana Dr. Philip Abradu-Otoo noted that the losses were mainly caused by the government’s infamous Domestic Debt Restructuring activities, depreciation of the local currency as well as other factors.

Dr. Abradu-Otoo, who was speaking on Accra-based based Citi TV, said the domestic debt restructuring had a toll on the operations of BoG.

“The central bank was making profits two-three years ago, last year, we made about GH¢1.2 billion of profits, but this year, it’s totally reversed and gone into a loss of GH¢60 billion. I don’t recollect BoG recording a loss in the past, this is the first time we are recording a massive loss. It’s a big deal,” the Director of Research noted.

He further continued that “the reason for the loss is primarily due to the Domestic Debt Exchange Programme. Just as the banks suffered losses on their holdings of government instruments, the BoG also suffered a loss on its holdings of government instruments-marketable instruments and non-marketable instruments.

He stressed that “the impact of the DDEP on these two items, we incurred a loss of GH¢48.1 billion, we also had some loans to COCOBOD which were impaired as a result of the DDEP. DDEP impact that has swung our balanced sheet into negative territories”.

Despite the development, Dr. Abradu-Otoo expressed optimism that the government would provide capitalization to enable the central bank to recover from the losses. He assured Ghanaians especially financial institutions that their monies with the BoG are safe explaining that the loss was not due to bad decisions.

“What were are seeing on the balance sheets of BoG is not as a result of reckless policy, or bad decisions but the direct impact from DDEP. All is safe, carry on with your normal businesses,” he assured.