BoG Remains Stable and Independent Despite Balance Sheet Strain – Governor Asiama

Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has reaffirmed the central bank’s operational stability and independence despite acknowledging that the institution is technically insolvent following the domestic debt exchange program.

Speaking at the Governor Talks Series during the ongoing World Bank/IMF Annual Meetings in the U.S., Dr. Asiama explained that while the 2022 domestic debt restructuring significantly weakened the Bank’s balance sheet, it has not undermined its ability to implement effective monetary policies.

“The domestic debt issue has had a major impact on our balance sheet. Technically, we are nearly insolvent, but policy-wise, we remain solvent and fully functional. Our focus now is on repairing the balance sheet over the medium term,” he stated.

The BoG recorded an operational loss of GH¢13.23 billion in 2023, which was reduced to GH¢9.49 billion in 2024. Despite these losses, Dr. Asiama emphasized that the Bank remains “policy solvent” and continues to fulfill its monetary and financial stability mandate effectively.

He also dismissed suggestions that the Bank’s weakened financial state had compromised its independence or subjected it to government control.

“We remain fully independent. There is no government interference in our operations,” he stressed.

Dr. Asiama further revealed that the Bank is introducing reforms to strengthen its autonomy through amendments to the Central Bank Act. These reforms aim to prevent fiscal dominance and ensure greater clarity on issues such as what qualifies as an emergency, reinforcing the Bank’s independence in the long term.