Ghana’s record-breaking currency appreciation is offering a silver lining to the nation’s rising debt stock, helping cushion the impact of external obligations even as total public debt crept up marginally to \$49.5 billion as of March 2025.
According to the latest Bank of Ghana data, the increase from \$49.4 billion in February marks a minimal rise in dollar terms, despite the cedi’s sharp appreciation—signaling that exchange rate gains may be easing pressure on Ghana’s external debt burden.
In cedi terms, the total public debt stood at GH₵769.4 billion, equivalent to 55% of GDP, compared to GH₵768.1 billion a month prior. The external component of the debt rose slightly to GH¢442.5 billion (\$28.5 billion), while the domestic portion dipped to GH₵326.9 billion from GH₵328 billion—reflecting a tempered demand for treasury bills.
The debt-to-GDP ratio remains relatively stable, with external debt accounting for 31.6% of GDP and domestic debt contributing 23.4%.
However, the big story lies in the cedi’s recent performance. The currency has staged a dramatic comeback, appreciating by 24.1% against the US dollar, 16.2% against the British Pound, and 14.1% against the Euro. As of May 2025, the cedi trades at approximately GH₵11.85 to the dollar, GH₵15.84 to the pound, and GH₵13.34 to the euro.
Analysts suggest this surge in the cedi’s value has played a crucial role in keeping the dollar-denominated debt from ballooning, despite ongoing fiscal pressures.
While the marginal uptick in the debt stock underscores continued borrowing needs, the strengthened cedi offers the government some breathing room as it navigates fiscal consolidation and debt sustainability under the IMF-supported program.
