By Lawrence Odoom/Phalonzy
The Bank of Ghana’s staggering losses are not evidence of fiscal recklessness but the calculated cost of restoring macroeconomic stability, according to Joe Jackson, Chief Executive Officer of Dalex Finance.
Speaking on Joy FM’s Super Morning Show on Monday, May 4, Mr. Jackson mounted a robust defense of the Central Bank’s financial posture, arguing that its interventions must be assessed against the backdrop of aggressive inflation containment.
“I will say this clearly and definitely. It is a good justification. You can’t avoid that, I know there are all kinds of arguments, there are also all sorts of red flags we should be aware of,” he said.
Jackson singled out open market operations as the principal driver of the BoG’s expenditure, describing them as indispensable instruments for draining excess liquidity and taming inflation.
“Let us look at the two biggest costs that are in the Auditor’s accounts that they gave us. The biggest cost was the open market operations, which, in simple English, means the cost that the central bank incurs in mopping up money in the system so that inflation comes down,” he noted.
“That cost was GH₵16.73 billion. But let’s look at it, inflation came down from over 20 per cent to now less than 5 per cent. If there is any evidence that this makes a difference, that is the evidence. You spent money to stabilise inflation…”
His remarks arrive amid intensifying scrutiny of the BoG’s balance sheet, particularly losses tied to its Domestic Gold Purchase Programme. Reported figures show the DGPP deficit escalated from GH¢5.66 billion in 2024 to roughly GH¢9.05 billion in 2025. While officials frame these as strategic outlays to buttress the cedi and fortify reserves, critics warn of the long-term fiscal ramifications.
Jackson himself has previously sounded alarms over the Central Bank’s persistent trading losses, cautioning that unchecked deficits could corrode institutional credibility. Yet he maintains that the present losses reflect deliberate policy trade-offs, not mismanagement.
The Bank of Ghana has consistently rejected allegations of maladministration, contending that its losses stem from calculated interventions designed to insulate the economy from external shocks and anchor currency stability.
The debate is unfolding against a backdrop of entrenched structural vulnerabilities. Jackson has repeatedly flagged foreign exchange leakages from the extractive sector as a perennial strain on the cedi, even during periods of trade surplus.
His latest intervention reinforces the contention that while the BoG’s losses are monumental, they may represent the inescapable price of securing short-term macroeconomic equilibrium.