Bank of Ghana Governor Boako says Ghc71 billion debt rise makes no sense in context of stronger cedi
The Governor of the Bank of Ghana has expressed concern over the recent seventy-one billion cedi increase in the country’s public debt, describing the situation as inconsistent with the relative strength of the national currency in recent months. Gideon Boako made the comments in an official address to economic stakeholders, urging deeper scrutiny of how debt levels have grown despite stability in the cedi.
Boako explained that while exchange rate stabilization is a positive development, the size of the debt rise suggests structural issues in fiscal management and revenue mobilization. He noted that a stronger cedi should, in theory, reduce the cost of servicing foreign currency denominated debt, yet public obligations have continued to expand rapidly.
According to the central bank governor, the explanation for this phenomenon requires a closer look at borrowing practices, expenditure patterns, and the balance between capital and recurrent spending. Boako emphasised that sound monetary policy alone cannot address fiscal imbalances, and called for comprehensive strategies that improve domestic revenue generation and tighten public financial discipline.
Economists have welcomed Boako’s remarks, saying they underscore the need for a whole of government approach to managing public finances. They argue that sustainable economic growth depends on both effective debt management and strategic investment that yields long term economic returns.
Public reactions to the comment have been mixed, with some members of the public expressing frustration at what they see as fiscal mismanagement, while others urge patience as the government continues efforts to reposition the economy. Civil society organisations have echoed Boako’s call for transparency in how public debt is acquired and utilised.
The Bank of Ghana governor also highlighted the importance of transparent reporting on debt operations and improved collaboration between fiscal and monetary authorities. He said that aligning debt strategy with national development goals will be critical to avoiding future imbalances.
As Ghana continues to navigate global economic pressures, the dialogue on debt sustainability and currency performance is gaining momentum. Analysts say that stabilizing the cedi is an important achievement, but it must be accompanied by responsible fiscal management that supports long term prosperity.
