In 2022, the Bank of Ghana (BoG) experienced a loss of ¢60.8 billion Ghana cedis.

In the aftermath of the ¢60.8 billion loss in 2022, the Bank of Ghana (BoG) remained steadfast in its commitment to recovering from the financial setback. As part of its efforts, the BoG focused on implementing strategies to bolster its financial position and ensure stability in the banking industry.

One of the key actions taken by the BoG was to closely monitor the performance of all 23 banks that participated in the government's Domestic Debt Exchange Programme (DDEP). The BoG conducted stress tests to assess the impact of the DDEP on the solvency, liquidity, and profitability of these banks. As a result, the BoG introduced policy and regulatory measures to provide relief to banks affected by the debt exchange, such as reducing the Cash Reserve Ratio and Capital Conservation Buffer.

Additionally, the BoG enhanced its supervisory surveillance systems to closely monitor the banking sector. Banks were required to submit more frequent balance sheets and liquidity reports, including interbank market activities and the cost of financing. Moreover, the BoG introduced additional reporting requirements for banks to assess the performance of the new bonds issued during the DDEP. These measures aimed to ensure timely intervention in case of any emerging issues and to maintain overall financial stability.

Recognizing the importance of foreign reserves in the country's economic stability, the BoG initiated the Domestic Gold Purchase (DGP) program and a gold-for-reserve program. By purchasing refined gold from certified domestic gold mining firms using local currency, the BoG increased its foreign reserves. The refined gold was then transferred to the Bank's offshore gold custodians, becoming part of the Bank's reserves.

Amidst the challenging financial situation, the BoG remained optimistic about its future prospects. The Board of Directors and Management firmly believed that continued efforts to restore macroeconomic stability and debt sustainability, alongside long-term initiatives to build reserves, would provide a solid foundation for the bank's operational policy efficiency in the foreseeable future.

Throughout the recovery process, the BoG maintained a transparent and communicative approach. The bank's Annual Report and Financial Statements revealed the extent of the loss and the actions taken to address the situation. By doing so, the BoG aimed to build trust and confidence among stakeholders, demonstrating its commitment to overcoming challenges and preserving financial stability within Ghana's banking industry.