By Daniel Bampoe
Deputy Ranking Member of Parliament’s Finance Committee, Dr. Gideon Boako, has dismissed claims that the Bank of Ghana’s GH¢9.49 billion loss in 2024 is as a result of the government’s Gold-for-Oil Programme, insisting instead that the shortfall is largely due to a deliberate accounting reclassification and operational measures to stabilise the economy.
Responding to growing public and political scrutiny following the release of the BoG’s 2024 financial report, Dr. Boako said critics were misrepresenting the data.
He explained that the reported loss stems primarily from open market operations and a technical change in the treatment of exchange rate movements and asset revaluations—not from mismanagement or policy failure.
“This loss is not what it seems on the surface,” he stated.
“The BoG incurred significant costs—GH¢8.6 billion—for open market operations to tighten liquidity, which was a necessary policy choice.
Additionally, the bank applied a revised accounting policy approved by its board, moving exchange and revaluation losses to Other Comprehensive Income (OCI).”
Dr. Boako argued that the decision to shift revaluation items—including foreign exchange fluctuations, gold holdings, and SDRs—out of the operating account was intentional and politically neutral.
He suggested the bank’s new leadership may have chosen not to report paper profits for transparency or strategic reasons.
“There’s been a deliberate effort by this board to avoid reporting artificial gains,” he said.
“Yes, there is an operating loss, but the equity position of the Bank has improved. Negative equity fell from GH¢65.34 billion in 2023 to GH¢61.32 billion in 2024. That’s a sign of recovery, not failure.”
The Tano North MP urged the public to focus on the broader financial trajectory rather than isolated headline figures, warning that partisan interpretations of central bank data could distort understanding of macroeconomic trends.
“This narrative that the BoG is collapsing or that Gold-for-Oil is to blame is not supported by the facts,” he stressed.
“What we are seeing is the result of a consistent monetary tightening policy and an accounting approach that should be applied again in 2025 for consistency.”
Dr. Boako concluded by calling for greater financial literacy and accountability in public discourse, noting that transparency in central bank reporting must not be sacrificed for political gains.
