Finance and economic policy analyst Senyo Kwasi Hosi has defended the reported financial “losses” of the Bank of Ghana, arguing that they reflect the cost of stabilizing the economy rather than poor management.
In a detailed Facebook post on May 4, 2026, Hosi said the widely discussed GH¢15.6 billion loss has been misinterpreted, insisting it represents deliberate policy measures aimed at restoring macroeconomic stability.
“What the Bank recorded was not an economic loss. It was the financial cost of delivering one of the most dramatic stabilisation turnarounds in Ghana’s recent history,” he wrote.
According to him, aggressive monetary tightening by the central bank significantly reduced reserve money growth, helping to drive inflation downward over a sustained period.
“This is the clearest demonstration of decisive monetary policy in action,” he added.
Hosi pointed to data showing inflation falling consistently for over a year—from 23.8% to 5.4%, and further down to 3.2% by March 2026—as evidence of the effectiveness of the Bank’s interventions.
He explained that the reported losses stem largely from policy-driven costs, including GH¢16.7 billion in Open Market Operations (OMO) to mop up excess liquidity, GH¢9.1 billion spent under the Domestic Gold Purchase Programme (DGPP), and GH¢29.1 billion in foreign exchange revaluation effects.
“These are not commercial losses. They are policy costs; the price of reversing years of fiscal slippages and monetary expansion,” he stressed.
Hosi also clarified that the foreign exchange revaluation component has been widely misunderstood, noting that it is an accounting adjustment rather than an actual cash outflow.
“The cedi strengthened by 40.7% in 2025… no reserves were lost. No cash left the Bank,” he explained.
On the gold purchase programme, he said it significantly boosted Ghana’s external position, increasing reserves from $9.1 billion to $13.8 billion and improving import cover to 5.7 months.
“The DGPP’s GH¢9.1 billion cost must likewise be viewed alongside its outcome,” he added.
Hosi concluded that the overall economic gains—including single-digit inflation, a stronger cedi, reduced import costs, and improved reserves—demonstrate that the Bank’s strategy has been effective.
“The ‘loss’ was the price of stability; and it worked,” he stated.