BoG losses justified as cost of stabilising economy — Joe Jackson

The Chief Executive Officer of Dalex Finance, Joe Jackson, has defended the Bank of Ghana’s reported losses, describing them as a necessary trade-off in efforts to restore macroeconomic stability.

Speaking on Super Morning Show on Monday, May 4, Jackson argued that the central bank’s financial performance should be assessed within the context of its aggressive policy interventions, particularly those aimed at taming inflation.

“I will say this clearly, there is a strong justification,” he stated. “While there are valid concerns and red flags to examine, these actions were not avoidable.”

He identified open market operations as the primary driver of the central bank’s losses, explaining that such measures—used to absorb excess liquidity—have played a decisive role in easing inflationary pressures.

“The largest cost reflected in the Auditor’s accounts is from open market operations,” he said. “In simple terms, this is the cost of reducing the amount of money in circulation to bring inflation down.”

According to him, the central bank incurred approximately GH¢16.73 billion in these operations. However, he pointed to a sharp decline in inflation, from above 20% to below 5%, as evidence of their effectiveness.

“If there is proof that these interventions work, that is it. Resources were deployed to stabilise inflation, and the results are visible,” he added.

His comments come amid intensified scrutiny of the central bank’s financial position, particularly regarding its gold trading and stabilisation initiatives.

Recent data shows that the Bank of Ghana recorded substantial losses linked to its Domestic Gold Purchase Programme (DGPP), rising from GH¢5.66 billion in 2024 to about GH¢9.05 billion in 2025. While policymakers frame these losses as strategic investments to support the cedi and broader economic stability, critics warn of potential long-term risks.

Jackson himself has previously raised concerns about persistent trading losses, cautioning that prolonged negative balances could erode confidence in the central bank if not carefully managed.

The Bank of Ghana has rejected claims of mismanagement, insisting that the losses reflect deliberate, policy-driven interventions designed to shield the economy from external shocks and stabilise the local currency.

The discussion unfolds against deeper structural challenges within Ghana’s economy. Jackson has consistently pointed to foreign exchange leakages, particularly within the extractive sector, as a continuing source of pressure on the cedi, even during periods of trade surplus.

His latest remarks underscore a broader argument: while the central bank’s losses are significant, they may ultimately represent the price of securing short-term economic stability.