Debt is one of the basic macroeconomic indicators and an important fiscal issue related to the sustainable development of the country. Public debt can be a stimulative instrument of economic policy, which depends on the skill of the strategy or efficient management of public finances. High inflation and the war in Ukraine threaten public finances and monetary stability at the global level. Geopolitical and economic trends have led to a strengthening of the U.S. dollar in 2022 and influenced the further movement of public debt costs. External debt, which accounts for a significant portion of the total public debt of most developing countries, is expressed in two major world currencies, the euro and the U.S. dollar. This paper analyzes the increase in external debt and the potential repayment costs as a result of the recent crisis. The analysis of public debt sustainability helps in the efficient management of fiscal policy and macroeconomic stability. The main objective of this research is to assess the potential impact of the dollar appreciation on the external debt growth trends in Bosnia and Herzegovina. We have used the main indicators for risk assessment in debt management and emphasized the importance of monitoring the currency structure, the structure of interest rates and the rational use of borrowed funds.