Ghana’s public debt portfolio presented a notable currency divergence at the end of July 2026.
The latest Summary of Economic and Financial Data on the government’s fiscal operations published by the Bank of Ghana shows that while the country’s debt stock in local currency rose to GHC 733.9 billion (approx. GHC 734 billion), the overall debt load actually contracted when evaluated in US dollars, dropping to USD 62.8 billion.
This, according to the BoG, brings Ghana’s total public debt-to-GDP ratio to 45.9%, supported by an annual nominal GDP baseline of GHC 1,597.1 billion, which is approximately GHC 1.6 trillion.
The Impact of Currency Movements
To understand how public debt can grow in cedis while shrinking in dollars, one must look at monthly exchange rate adjustments alongside domestic borrowing dynamics. Between June and July 2026, cedi-denominated public debt expanded by GHC 14.4 billion, rising from GHC 719.5 billion to GHC 733.9 billion
Over that same single month, the total debt in dollar terms shrank by USD 0.6 billion, falling from USD 63.4 billion in June to USD 62.8 billion in July.
When the local currency stabilizes or appreciates against the US dollar, existing foreign obligations convert into fewer cedis, or conversely, newly issued domestic debt accounts for a larger share of the total cedi tally without pushing up the dollar-equivalent liabilities.
Domestic vs. External Debt Breakdown
A closer look at the structure of Ghana’s public debt reveals distinct trajectories between domestic and foreign borrowing.
Domestic Debt: Domestic obligations rose to GHC 396.7 billion in July 2026, up from GHC 391.1 billion in June. Domestic debt now represents the largest portion of total public borrowing, accounting for 24.8% of GDP.
External Debt: External debt stood at USD 28.8 billion in July 2026, which is equivalent to GHC 337.2 billion or 21.1% of GDP. Foreign-currency debt has steadily declined from USD 29.4 billion at the start of the year, reflecting reduced reliance on external borrowing and disciplined external debt service.
Broader Fiscal Picture
The fiscal data highlights a stable debt outlook, with the 45.9% Debt-to-GDP ratio remaining well below historic highs.
Meanwhile, cumulative fiscal operations through July 2026 recorded a cash primary surplus of 1.0% of GDP and a modest overall cash budget deficit of 0.6% of GDP, signaling sustained primary fiscal discipline across government operations.
