Ghana’s public debt stock has risen sharply by more than GH¢70 billion within a three-month period, largely driven by the cedi’s renewed depreciation against the US dollar in the third quarter of 2025.
Latest data from the Bank of Ghana, analysed by JoyNews Research, show that public debt increased by approximately GH¢71.6 billion in the third quarter, pushing the total debt stock to about GH¢684.6 billion. Projections indicate that Ghana’s total public debt could exceed GH¢700 billion by the end of the year if the cedi continues to face sustained pressure against the dollar.
This increase follows a brief improvement earlier in the year when public debt declined by GH¢156.4 billion between the first and second quarters of 2025. The recent reversal has been attributed mainly to exchange rate developments, with the cedi losing about 24 per cent of its value against the US dollar in the third quarter, after appreciating by more than 40 per cent in the previous quarter.
Speaking during the 2025 Mid-Year Budget presentation, Finance Minister Dr Cassiel Ato Forson highlighted that prudent debt management and a stronger cedi had contributed to a significant improvement in Ghana’s debt profile earlier in the year. According to him, public debt fell from GH¢726.7 billion at the end of December 2024 to GH¢613 billion by the end of June 2025.
However, historical trends show that exchange rate depreciation remains a major driver of Ghana’s debt accumulation. In 2023, currency depreciation alone accounted for about 62.5 per cent of the increase in the total public debt stock, underscoring the country’s vulnerability to foreign currency risks.
Analysts also point to a slowdown in foreign exchange support by the Bank of Ghana, coupled with rising import demand, as factors contributing to the recent weakening of the cedi. In previous years, sustained dollar injections by the central bank helped stabilise the currency and supported a more favourable debt outlook.
So far in 2025, the Bank of Ghana is reported to have supplied about US$10 billion to the foreign exchange market under what it describes as a foreign exchange intermediation framework, rather than direct market intervention.
Economists warn that further depreciation of the cedi could significantly worsen Ghana’s debt profile if current pressures persist, raising concerns about debt sustainability and the broader macroeconomic outlook.
