Dr. Cassiel Ato Forson
Public debt has climbed to GH¢628.8 billion as of July 2025, following a GH¢15.8 billion increase within the month, figures from the Bank of Ghana have shown.
The central bank’s September update placed the debt stock at the equivalent of $59.9 billion, or 44.9 percent of the country’s total economic output.
The new level marks a reversal of the decline seen over three consecutive months earlier in the year, when the sharp strengthening of the cedi helped ease the burden of external obligations.
Debt stood at GH¢613 billion in June and as high as GH¢769.4 billion in March, underscoring the extent to which exchange rate movements continue to shape the country’s debt profile.
The central bank’s data indicated that the country’s external commitments were steady at $29.0 billion, representing 21.8 percent of GDP.
Domestic debt, however, rose further to GH¢323.7 billion in July from GH¢312.7 billion the previous month, accounting for 23.1 percent of GDP.
Government’s fiscal indicators pointed to a deficit-to-GDP ratio of 1.4 percent for July, while the primary balance showed a modest surplus of 0.7 percent.
The figures point to persistent pressure from domestic borrowing even as earlier gains from currency valuation provided some breathing space.
On the currency front, the cedi’s strong rally in the first half of the year has lost pace. After appreciating by more than 42 percent by mid-year, the cedi has given up nearly a fifth of its value between June and September.
As of September, it traded at GH¢12.15 to the dollar on the interbank market and GH¢13.80 on the forex bureau market, narrowing its year-to-date gain to 21 percent.
Performance against other major currencies has also moderated. The cedi appreciated by 6.9 percent against the euro to settle at GH¢14.23 and gained 11.8 percent against the pound, closing at GH¢16.45 on the interbank market.
These increases, however, were far lower than the double-digit surges recorded against both currencies earlier in June.
Explaining the trend, Governor of the Bank of Ghana, Dr. Johnson Asiama, linked the softer performance to weaker remittance inflows and heightened trade-related pressures.
“Remittances have not been as strong as in previous periods. However, the impact on the cedi’s performance has been contained,” he said at the September 15 opening of the Monetary Policy Committee meetings.
By Ernest Kofi Adu