Finance
Ghana’s Forex Reserves Strong Enough to Pay Maturing Debt Without Stressing the Cedi – Economist Allays Fears
As fears mounted that the payment of Ghana’s maturing Eurobond debt this July could weaken the cedi due to heavy foreign exchange outflows, a Ghanaian economist is offering a calm, confident perspective that Ghana has more than enough forex reserves to weather the storm. Dr. Paul Appiah Konadu fi...
The High Street Journal
published: Jul 07, 2025

As fears mounted that the payment of Ghana’s maturing Eurobond debt this July could weaken the cedi due to heavy foreign exchange outflows, a Ghanaian economist is offering a calm, confident perspective that Ghana has more than enough forex reserves to weather the storm.
Dr. Paul Appiah Konadu finds the successful servicing of the country’s external debt obligations as a strong signal that Ghana’s foreign reserves are in good health. He says it is estimated that the country’s forex reserves are around $10 billion.
He explains that this implies that the country can meet its periodic external debt payments without triggering undue pressure on the cedi.

The clarification from the economist comes after many analysts feared that the stability of the cedi might be a hoax since the country is no longer honouring its debt obligations. It was anticipated that when the country pays its maturing debt, it will put undue pressure on the cedi, causing it to tumble.
The government last week paid the next tranche of the country’s maturing Eurobond, amounting to about $350 million.
With the swift payment by the government without any challenges, the economist is calming nerves that the local currency is still in a good place.
“Now that we are able to service our debts, it presupposes that we probably have adequate forex or foreign exchange reserves, more or less of about 10 billion dollars, which means that we will be able to meet the periodic payments for our external debt commitments without any significant stress on the cedi,” Dr. Paul Appiah Konadu told The High Street Journal.

Dr. Konadu further argued that the latest development rather strengthens investor confidence, especially as the currency has shown relative stability in recent weeks. He believes that with Ghana demonstrating the capacity to honour its external debt, investor sentiment may shift positively, potentially attracting fresh foreign capital into the economy.
“Investors are beginning to have some confidence in the Ghanaian economy, which may lead to the attraction of some foreign investments owing to the expected stability of the cedi going forward,” he added.
But it doesn’t end there. Ghana’s forex position could soon receive another significant boost. The Executive Board of the International Monetary Fund (IMF) is expected to approve the fourth review of Ghana’s $3 billion bailout programme later today.

If approved, the country will unlock another tranche of financial support, an inflow that could replenish or even outweigh the forex outflows used to honour the Eurobond payment.
This expected disbursement will add more firepower to Ghana’s reserves, strengthening the country’s ability to finance its import needs, support the local currency, and meet future external debt obligations with greater confidence.
Read More