Ghana’s public debt stock has risen sharply, increasing by over GH¢70 billion in just three months, driven by the cedi’s significant depreciation against the US dollar in the third quarter of 2025. According to latest Bank of Ghana data, the total public debt has now reached GH¢684.6 billion, with projections indicating it could exceed GH¢700 billion by year-end if the cedi’s struggles continue.
The cedi’s 24% loss in value against the US dollar in Q3 has largely fuelled this debt increase, undoing some of the gains made in Q2 when it appreciated by over 40%. This recent depreciation has wiped out some of the debt reduction achieved through prudent management and appreciation earlier in the year.
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Earlier in the year, Finance Minister Dr. Cassiel Ato Forson had reported a significant improvement in Ghana’s debt profile, citing prudent debt management and exchange rate appreciation, with debt declining from GH¢726.7 billion in December 2024 to GH¢613 billion by June 2025.
However, historical data highlights exchange rate depreciation as a key driver of Ghana’s rising debt levels, accounting for 62.5% of the increase in total public debt in 2023 alone. The slowdown in foreign exchange interventions by the Bank of Ghana and rising import pressures have also contributed to the cedi’s recent depreciation.
The Bank of Ghana has supplied about US$10 billion to the foreign exchange market this year, operating under a foreign exchange intermediation framework. Economists warn that if the current pressures persist, additional depreciation of the cedi could worsen Ghana’s debt profile, undermining the country’s economic stability.
The projection is that the government will need to take measures to stabilize the cedi and address the rising debt levels, ensuring the country’s economic growth and development are not compromised.
