- BoG Clarifies 2025 Policy Actions, Says Excess Liquidity Was Not Money Printing
The Bank of Ghana has rejected claims that it printed money in 2025, insisting that its policy actions during the year were aimed at managing liquidity, protecting price stability and preventing excess money supply from feeding inflation and exchange rate pressures.
Mr Bernard Otabil, Director of Communications at the Bank of Ghana, said the central bank did not engage in money printing during the year and that public debate around the issue must distinguish between liquidity conditions in the financial system and direct central bank financing.
“What it is not is that in 2025 there was no printing of money,” Mr Otabil said in an interview. “That is the first thing we needed to establish, and that is what I can speak to at this point in time.”
His clarification comes amid renewed public debate over the Bank of Ghana’s 2025 financial results, its reported losses and the cost of monetary policy operations used to stabilise the economy after recent years of fiscal and currency stress.
Mr Otabil said references to excess liquidity in the economy should not be interpreted as evidence of money printing. Rather, he explained, such references relate to the central bank’s assessment of money supply conditions and the need to prevent excess liquidity from creating inflationary pressure.
He noted that a basic economic principle remains that when too much money chases too few goods, inflationary pressures can build. If excess liquidity is not properly managed, it may circulate through the economy in ways that affect prices and the exchange rate.
The Bank of Ghana’s position is likely to feed into the wider argument over how its 2025 policy decisions should be interpreted. Critics have pointed to the central bank’s losses and liquidity-management costs as evidence of policy strain. But the Bank has argued that its interventions must be judged against the broader objective of restoring macroeconomic stability.
For the central bank, the distinction matters. Money printing is commonly associated with direct financing of government expenditure and an expansion of reserve money that can fuel inflation. Liquidity management, by contrast, involves central bank tools aimed at influencing the amount of money circulating in the financial system to keep inflation and currency pressures under control.
The clarification also comes at a time when Ghana’s inflation has fallen sharply from crisis levels, while the cedi has stabilised after a period of severe volatility. The Bank’s argument is that such gains required active liquidity control rather than unchecked monetary expansion.
Still, the issue remains politically sensitive because Ghana’s earlier economic crisis was partly linked to fiscal dominance, central bank financing and the expansion of reserve money. Any suggestion of renewed money printing therefore carries major repercussions for public confidence, investor sentiment and the credibility of the ongoing stabilisation programme.
Mr Otabil’s intervention seeks to draw a firm line between the crisis-era debate over monetary financing and the 2025 policy environment, where the Bank says its focus was on managing liquidity, not creating money to finance the government.
