30% reduction in inflation resulted in a cost of GH¢8.3bn on BoG’s open market operations

The Bank of Ghana (BoG) clarified its GH¢8.3 billion cost on open market operations, contributing to a GH¢10.5 billion loss in 2023.

Bernard Otabil, BoG’s Director of Communications, emphasized that this loss does not indicate policy failure but reflects efforts to reduce inflation from 54.1% to 23.2%. Despite increased costs compared to GH¢1.7 billion in 2022, the long-term benefits of stable inflation outweigh short-term expenses.

Otabil noted that central banks prioritize national welfare over profits and maintain credibility by effectively managing inflation, essential for attracting investment and sustaining favorable trade.

BoG remains committed to its 8% inflation target with a ±2% tolerance.