BoG reiterates zero financing of government budget to protect price stability 

The Bank of Ghana (BoG) has reaffirmed its commitment to zero monetary financing of government budgets, saying it will not print money to fund fiscal deficits in order to safeguard price stability and protect the cedi's value.

In its 2025 financial statements, the Bank said the policy marked a decisive break from past practices where central bank financing of government spending contributed to rising inflation, currency depreciation and loss of purchasing power among households.

It explained that refraining from monetary financing helped to prevent excess liquidity in the economy, which often fueled inflationary pressures and undermined confidence in the domestic currency.

“Adherence to zero monetary financing strengthens policy credibility and supports sustainable economic recovery, particularly by preserving the purchasing power of incomes and protecting vulnerable households,” the statement said.

---GNA