Ghana’s public debt has risen sharply again, increasing by more than GH¢70 billion in just three months, largely due to the cedi’s steep depreciation against the US dollar in the third quarter of 2025.
According to the latest data from the Bank of Ghana, public debt grew by about GH¢71.6 billion in the third quarter alone.
If the cedi continues to face sustained pressure against the dollar, total public debt could exceed GH¢700 billion by the end of the year.
After declining by GH¢156.4 billion between the first and second quarters of the year, Ghana’s total public debt has now climbed to GH¢684.6 billion.
This reversal is mainly driven by the cedi’s renewed weakness in the third quarter.
During the period, the cedi lost about 24% of its value against the US dollar, after having gained more than 40% in the second quarter.
Earlier in the year, Finance Minister Dr Cassiel Ato Forson said in the 2025 Mid-Year Budget that prudent debt management and a stronger exchange rate had significantly improved Ghana’s debt position.
He noted that 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 rising public debt.
In 2023 alone, currency depreciation accounted for 62.5% of the increase in the country’s total debt, highlighting Ghana’s vulnerability to foreign exchange risks.
The recent depreciation of the cedi has also been linked to a slowdown in foreign exchange support by the Bank of Ghana, alongside rising import demand.
Over the years, dollar injections by the central bank have helped limit excessive currency depreciation and supported a more stable public debt profile.
This year, the Bank of Ghana is reported to have supplied about US$10 billion to the forex market under a foreign exchange intermediation framework rather than direct intervention.
If current pressures persist and the cedi continues to weaken, analysts warn that Ghana’s debt profile could deteriorate further.
