Following the reported GHC 60 billion loss reported by the Bank of Ghana in the 2022 Financial Year, the International Monetary Fund (IMF) has called for calm claiming there is no cause for alarm.

After the publication of the audited account which revealed the loss, the Central Bank has come under intense criticism from opposition political parties and civil society groups (CSOs).

The Minority is demanding the resignation of the Governor, Dr. Ernest Addison, and his deputies over the issue, insisting the apex bank had been reckless; a claim rejected by the BoG.

Despite the pressure at home, the IMF in a post on its website explained that the BoG suffered losses because it participated in the Domestic Debt Exchange Programme (DDEP), which was a key element of the government’s plan to restore macroeconomic stability and public debt sustainability.IMF

Find below the comment of the IMF on the Bank of Ghana situation;

Why did the Bank of Ghana (BoG) incur losses from the authorities’ domestic debt exchange and what are their implications?

The Ghanaian authorities’ domestic debt exchange (DDE) is a key element of their plan to restore macroeconomic stability and public debt sustainability. The BoG is participating in the DDE to share some of the burden the DDE places on government debt holders, along with banks, other financial institutions, pension funds and individuals.

The loss the BoG incurred in the process has contributed to reducing its net equity to a negative value. Importantly, however, this does not prevent the BoG from fulfilling its policy mandates and ensuring inflation gradually returns toward its 8-percent target. Indeed, central bank income is expected to be sufficient to cover monetary policy operational costs. The BoG’s net equity is expected to improve significantly over time and eventually return to positive territory.