In early 2025, the Bank of Ghana took a bold step. It released $1.4 billion from its reserves to strengthen the cedi, pulling it from GHS 17 to the dollar to GHS 10. To many, it seemed like a risky move. But the results speak for themselves.
Ghana’s external debt stood at approximately $28 billion. At an exchange rate of 17, that amounted to around GHS 481 billion. After the cedi appreciated, the local currency value of that debt fell to GHS 285 billion. In effect, the intervention delivered savings of GHS 196 billion. It cost GHS 24 billion to achieve this outcome, resulting in net savings of over GHS 170 billion.
But the benefits go beyond the numbers. Because the cedi held firm, every debt payment made in 2025, along with every agreement under the ongoing debt restructuring program, generated even greater savings in local currency terms. This was not just debt reduction. It was debt reduction at a lower cost, with stronger terms and fewer future risks.
At the same time, GDP rose significantly from GHS 1.176 trillion to GHS 1.4 trillion, improving the debt-to-GDP ratio from 61.8 percent to 55 percent. That is not just sound policy. It is economic discipline in action.
Most importantly, this intervention brought real relief to citizens by easing inflationary pressures, stabilizing prices, and restoring public confidence in the economy.
The intervention was not just worth it. It was necessary, timely, and a smart use of reserves that safeguarded Ghana’s financial future.
The Africa Development Council urges President John Dramani Mahama to remain focused and consolidate these gains by accelerating efforts toward industrial domestication. Additionally, the Council recommends that the proposed 24-hour economy policy be government-led, government-powered, and government-facilitated. Financially, it should adopt a Public-Private Partnership (PPP) model, with the government playing a commanding role.
Author: Ernest Apetsi,
Executive Secretary-Africa Development Council
Educationist | Development Expert
