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The Bank of Ghana has reported significant losses totalling GH¢60.81 billion for the financial year 2022, in stark contrast to the GH¢1.23 billion profit recorded in 2021.
The losses were primarily attributed to the government’s domestic debt restructuring activities and the depreciation of the local currency, among other factors.
The audited financial statement for 2022, released on July 28, revealed that as of December 31, 2022, the total liabilities of the central bank and its subsidiaries exceeded its total assets by GH¢54.52 billion.
This decline in net worth was a direct consequence of the impact of the Domestic Debt Exchange Program (DDEP) and the impairment of certain assets of the Group.
The DDEP led to the impairment of the Government of Ghana’s securities holdings by GH¢48.45 billion, while loans and advances granted to Quasi-government and financial institutions amounted to GH¢6.12 billion. Additionally, the depreciation of the local currency resulted in a net exchange loss of GH¢5.27 billion.
In response to the negative net worth position and solvency concerns, the Bank’s Board of Directors and Management assessed the Group’s ability to generate sufficient income to cover monetary policy operations and other operational costs.
