A Founder and Managing Partner of the Songhai Group, Dr Hene Aku Kwapong, has called for a reassessment of Ghana’s monetary policy framework, warning that the scale of the Bank of Ghana’s financial position could have implications for economic stability and central bank credibility.
Speaking on Channel One TV’s The Point of View on Monday, May 4, where discussions focused on the Bank of Ghana’s 2025 financial statements, Dr Kwapong said policymakers must balance competing priorities in managing the economy.
He explained that central banking often operates within what he described as an “impossible triangle” involving banking independence, foreign exchange stability, and capital controls.
According to him, difficult trade-offs are inevitable when managing these policy objectives, especially in a challenging macroeconomic environment.
“We have to actually do serious policy. There is what I will call the impossible triangle that every central policy has to work through. There is banking independence, FX stability and also capital controls,” he said.
Dr Kwapong cautioned that the Bank of Ghana’s rising equity position and broader financial pressures could weaken its ability to respond effectively to currency pressures if they arise.
He noted that concerns extend beyond balance sheet figures to issues of credibility and institutional strength.
“We are at a point where if we get into a case where the central bank is running such a huge equity position, its capacity to be able to defend the currency should it be necessary, its capacity even just its credibility and everything now is on the line,” he stated.
He therefore urged a broader policy review to ensure better coordination and sustainability in the management of monetary and financial stability.
“That is for me what we have to step back, take a look at these four buckets and say how do we manage these going forward,” he added.
His comments come amid ongoing debate over the Bank of Ghana’s 2025 financial performance, which showed a deepening operating loss of GH¢15.6 billion, widening negative equity, and increased costs linked to liquidity management operations, exchange rate pressures, and sovereign debt restructuring.
Despite the losses, the central bank has maintained that it remains policy solvent, with its core income still sufficient to cover monetary policy implementation costs.
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