Bank of Ghana Warns External Debt Talks Could Pressure Cedi and Foreign Payments | The Bank of Ghana (BoG) has warned that completing the remaining external debt restructuring negotiations could create short-term external payment challenges for Ghana. As a result, the country may face increased pressure on the cedi as external debt repayments resume.
According to the BoG’s May 2026 Monetary Policy Report (MPR), Ghana will need higher domestic savings to support future external debt service obligations. Therefore, the central bank urged policymakers to continue building strong foreign exchange reserves to meet upcoming debt payments.
At the same time, the BoG cautioned that global economic uncertainties remain a major risk to Ghana’s fiscal outlook. In particular, commodity price fluctuations and geopolitical tensions could affect government revenue and overall fiscal performance.
Despite these concerns, the central bank said the government met its fiscal targets during the first quarter of 2026. Although revenue collection initially raised concerns, performance improved in April following the implementation of new revenue measures announced in the 2026 Budget.
Furthermore, the BoG attributed the improvement to the use of technology and artificial intelligence (AI). These tools have helped plug revenue leakages while improving the efficiency of tax collection.
In addition, the central bank expects tighter expenditure control in the coming months. This outlook is supported by the expanded implementation of the commitment authorisation system and the start of value-for-money operations, which aim to improve public spending efficiency.
Government budget operations for the first quarter of 2026 recorded an overall budget surplus of GH¢1.709 billion on a commitment basis. This represents 0.1% of Gross Domestic Product (GDP), compared with the projected deficit of GH¢18.578 billion, or 1.2% of GDP.
Similarly, the primary balance posted a surplus of 1.2% of GDP. This exceeded the government’s target of 0.2% of GDP.
On a cash basis, the government also achieved a budget surplus of GH¢824.3 million. By contrast, the budget had projected a deficit of GH¢20.924 billion. The surplus represents 0.1% of GDP, while the projected deficit stood at 1.3% of GDP.
Bank of Ghana Warns External Debt Talks Could Pressure Cedi and Foreign Payments | AviationGhana
