Dr. Gideon Boako questions basis of BoG's accounting reporting approach to declare 2024 'losses'

Dr. Gideon Boako, Deputy Ranking Member of Parliament’s Finance Committee, criticized Dr. Johnson Asiamah, the Governor of the Bank of Ghana.

He claims there is a politically motivated effort to change the Bank's accounting methods. This change would declare losses in the 2024 financial statement and blame it on the Gold-for-Oil program.

In a statement on June 6, Dr. Boako urged the Governor to “speak like a Governor and stop the needless politicking.”

Dr. Boako explained that central banks are not meant to make profits. They should not be compared to commercial banks.

“Central banks provide public goods without charging for their services,” he said. He noted that currency printing is free for the public.

He clarified that nearly 90.6% of the Bank of Ghana’s 2024 losses come from Open Market Operations (OMO). The losses linked to the Gold-for-Oil program account for about 18.9%, primarily due to exchange losses.

Dr. Boako revealed that the Bank's board voted to change its accounting policy for 2024. They shifted from IMF-recommended practices to those outlined in the Bank of Ghana Act.

“All previous gains reported in operating accounts have moved to Other Comprehensive Income (OCI),” he stated. This shift resulted in an operating loss but a gain in OCI.

Despite reporting a loss, Dr. Boako noted that negative equity at the Bank had actually decreased.

He questioned why this reporting change was made, suggesting it aimed to create a perception of mismanagement under current leadership.

“It seems clear that the board wants people to see BoG management as making another loss,” he said.

According to Dr. Boako, there were issues with applying standards and laws regarding certain items in the financial statement for 2024. He referred to this as "Accounting Mismatch."

He emphasized that this new accounting approach must be consistently applied in 2025 and expressed his intent to monitor future reports closely.