Dr Gideon Boako, the Member of Parliament for Tano North, has alleged that the Bank of Ghana’s liquidity management operations in 2025 effectively transferred public resources to commercial banks.
In a statement reacting to the Bank’s 2025 financial statements, Dr Boako argued that the central bank’s handling of Open Market Operations (OMO) contributed significantly to its heavy losses while commercial banks recorded strong profits.
“BoG booked the losses, commercial banks booked the profits,” he stated.
According to him, the Bank’s OMO costs rose sharply from GH¢8.2 billion in 2024 to GH¢16.73 billion in 2025 after it abandoned the dynamic Cash Reserve Ratio mechanism.
He described the move as a return to “the most expensive liquidity-management tools”, despite declining inflationary pressures.
“This is not monetary policy. This is a wealth transfer from the public balance sheet to private balance sheets. And it is indefensible,” the Tano North MP asserted.
Dr Boako further accused the central bank of reversing foreign exchange reserve-holding rules in a manner that injected liquidity back into the financial system, only for the BoG to mop it up again at high interest rates through OMO instruments.
He maintained that such decisions weakened the Bank’s balance sheet unnecessarily.
The MP also criticised the Bank’s foreign exchange and gold operations, claiming they were being conducted at “structural loss”.
He alleged that the BoG recorded a GH¢9 billion loss under its gold purchase programme and questioned why the Bank sold 18 tonnes of gold reserves while still ending the year with substantial losses.
“The Bank buys FX or gold at market rates but values or sells them at an artificially lower official rate,” he said.
Dr Boako argued that such practices amounted to “policy-manufactured losses” rather than unavoidable economic outcomes.
He warned that continued losses at the central bank could undermine confidence in Ghana’s financial system and damage institutional credibility.
“Credibility, once broken, is expensive to rebuild,” he added.