Former Finance Minister and Ranking Member on Parliament’s Finance Committee, Dr Mohammed Amin Adam, has formally written to the International Monetary Fund (IMF) on the heavy loss incurred by the Bank of Ghana (BoG).

This comes after the Central Bank released its audited 2025 financial statements on May 1, which revealed a GH¢15.3 billion net loss and the negative equity of about GH¢93.8 billion, sparking wild reactions from Parliament, civil society, and analysts.

In a detailed letter to the International Monetary Fund Ghana Mission Chief under the Extended Credit Facility (ECF) programme in Washington, D.C., Mohammed Amin Adam raised concerns about the heavy implications the Bank of Ghana’s losses could have on the country’s fiscal stability, warning of what he described as “material implications” for Ghana’s “macroeconomic stability, fiscal outlook, and post-programme policy credibility.”

He highlighted concerns, their implications, and suggested recommendations the IMF should consider in its engagements with the Government of Ghana and the Bank of Ghana.

As the IMF’s ECF programme with Ghana nears its end, Mr Amin Adam highlighted the need to sustain the gains from the programme; however, suggesting that the BoG’s recent report appears to suggest otherwise, hence the need for recommendations offered in the letter to the global lender.

“As the programme comes to an end, it is imperative that greater attention is paid to safeguarding the durability of these gains. However, the publication of the 2025 financial statements of the Bank of Ghana has raised deep concerns, and I would like to draw the Fund’s attention to significant fiscal, monetary, and governance risks arising from the statements, and to propose recommendations for strengthening fiscal-risk management, central bank balance sheet repair, and post-programme policy sustainability”, parts of the statement read.

IMF 5th May 26 2Download

Analysis of Bank’s statements

Dr Adam, in seven itemised points, drew the IMF’s attention to key concerns in the Central Bank’s audit statements.

Firstly, it addressed BoG’s deepening negative equity (BoG’s liabilities are greater than its assets) and the worsening of the country’s already weak balance sheet.

“First, the Bank of Ghana remains in a severe negative equity position. Group negative equity increased from GH¢58.62 billion in 2024 to GH¢93.82 billion in 2025, while the Bank’s own negative equity increased from GH¢61.32 billion to GH¢96.28 billion. This indicates that meaningful balance sheet repair has not yet commenced in substance, and that the Government remains exposed to a large and growing recapitalisation obligation”.

He also addressed BoG’s rising loss despite an increase in its operating income, citing that “the Bank’s reported loss worsened despite increased operating income. The Bank recorded a loss of GH¢15.63 billion in 2025, compared with GH¢9.49 billion in 2024. This deterioration occurred even though operating income increased, largely because operating expenses, particularly open market operation costs, revaluation losses, exchange losses, and gold-related losses, remained elevated. It should also be noted that an analysis based on comprehensive income suggests that the full impact on the Bank’s capital position is more severe than what is reflected in the profit and loss account alone.

While the Bank recorded a loss of GH¢9.49 billion in 2024, this was offset by GH¢13.5 billion of positive other comprehensive income, resulting in a net comprehensive gain of GH¢4.02 billion. In contrast, in 2025, the Bank recorded both a larger loss and a significant negative reserve movement, resulting in a total comprehensive loss of GH¢34.95 billion. This gets to GH¢44 billion when net gains from the sale of gold are added”.

Another concern addressed by Mr Adam is the surge in Open Market Operation costs, which nearly doubled from GH¢8.60 billion in 2024 to GH¢16.73 billion in 2025. He believes that “This implies that monetary policy implementation continues to carry a very high quasi-fiscal cost, with OMO expenses constituting a substantial share of operating income. Without the one-off gain from the sale of gold reserves, OMO costs would have exceeded the Bank’s operating income, raising serious questions about the sustainability of current policy operations”.

Policy solvency issues were also highlighted as the former Minister raised questions about the Bank’s positive policy solvency position of GH¢5.5 billion. This figure requires careful interpretation, suggesting that underlying risks may still exist, citing that “...this calculation includes a GH¢9.57 billion net gain from the sale of refined gold. Without this one-off gain, the underlying policy solvency position appears materially weaker and potentially negative. This raises concerns that the apparent improvement in policy solvency may not reflect a fundamental strengthening of operations, but rather the impact of non-recurring income”.

Gold-related activities raise volatility concerns after recording mixed results, GH¢9.57 billion in gains from refined gold sales against GH¢9.05 billion in net losses on gold deals.

“Fifth, gold-related activities introduce volatility and transparency risks. The Bank recorded a GH¢9.57 billion gain from the sale of refined gold, while also recording GH¢9.05 billion in net losses on gold deals. The accounts further show a sharp increase in gold-related receivables and liabilities, suggesting complex and potentially recurring operational exposures. These developments warrant careful scrutiny to determine whether they reflect temporary transactions, structural policy tools, or quasi-fiscal operations with broader fiscal implications. The economic net benefit of the gold programme is therefore significantly smaller than the headline gains suggest,” parts of the letter highlighted.

Recommendations

Dr Amin Adam is urging the IMF to ensure a transparent and structured recapitalisation plan for the Bank of Ghana, with clear details on funding, timelines, and a path to restoring positive equity, backed by parliamentary oversight. He also calls for the Bank’s financial position to be fully integrated into government fiscal-risk planning, recognising its negative equity as a potential burden on public finances.

He further recommends improving transparency and accountability, including clearer reporting on quasi-fiscal operations, gold transactions, and a consistent policy solvency measure that excludes one-off gains. In addition, he stresses the need to resolve outstanding issues such as the treatment of the Domestic Debt Exchange Programme in official accounts and to conduct an independent review of non-standard accounting practices.

Dr Amin Adam also emphasises the importance of maintaining strict limits on central bank financing of government, warning against policies that could undermine economic stability. Finally, he proposes the creation of a post-programme fiscal-risk dashboard, to be published regularly, to track key financial risks and improve transparency in economic management.