The Deputy Ranking Member on Parliament’s Finance Committee, Dr Gideon Boako, has challenged the Finance Minister over claims that exchange rate pressures are responsible for the recent surge in Ghana’s public debt.
Writing under the headline “Double-tongued Minister for Finance,” the Tano North MP accused the government of contradicting itself by praising currency appreciation when debt levels decline, while blaming the same factor when debt figures rise.
“They were bragging that the stronger cedi helped to reduce the debt stock, so why this contradiction?” he asked.
According to him, the assertion that currency appreciation directly drives up debt lacks economic justification.
He maintained that while exchange rate movements can have indirect effects, they do not logically explain a sharp rise in the debt stock.
“I am still struggling to understand how appreciation causes debt to go up,” he stated.
Dr Boako noted that the foreign-denominated debt stock at the end of 2024 was calculated using an exchange rate of GH¢14.3 to the dollar, compared to the current rate of roughly GH¢11.4.
Despite the cedi’s relative strength, he said the debt stock has increased, raising serious questions about the Finance Ministry’s explanation.
He stressed that the depreciation recorded over the last three months alone cannot account for an increase of more than GH¢71 billion in debt.
“This clearly shows a complete lack of understanding of the debt dynamics,” he said, calling on the Finance Minister to return with a more accurate and transparent account of the figures.
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