A Ghanaian retiree has taken legal action against the Bank of Ghana (BoG) and its immediate past Governor, Dr Ernest Addison, accusing them of gross negligence in the management of the Ghana Cedi.
In a writ filed at the Accra High Court, the plaintiff, Balbir Violet Allan, a resident of Adabraka, contends that the drastic depreciation of the cedi during Dr Addison’s tenure has significantly eroded the value of her investments in government treasuries, particularly ESLA Bonds.
According to the suit, when Dr Addison assumed office in February 2017, the cedi-dollar exchange rate stood at GH¢4.26 to $1. However, by February 3, 2025 — when he proceeded on terminal leave — the rate had surged to GH¢15.49 to $1, reflecting a depreciation of approximately 264 percent.
Filed by her lawyer, John E. Baiden of The Liberty Institute Law Firm, the suit argues that the Bank of Ghana, through its Governor, was legally mandated to provide the country with a stable currency.
Instead, the second defendant allegedly allowed the cedi’s value to be dictated solely by market forces such as demand and supply in the foreign exchange market, resulting in instability and volatility.
The plaintiff claims the former Governor failed to develop or implement a credible and lawful plan to stabilise the currency. As Governor, Dr Addison also chaired both the BoG’s Board and its Monetary Policy Committee, which are responsible for formulating and executing monetary policy measures, including currency stabilisation.
“The second defendant has so controlled and conducted the affairs of the first defendant in a manner that extensive harm has befallen the cedi, including that of the plaintiff’s,” the writ states. It argues that justice requires that the legal responsibilities of the Bank of Ghana be made coterminous with those of the Governor, given his dual role as head of the institution and chair of its policy-making bodies.
Ms Balbir said she officially notified Dr Addison on May 30, 2024, of her intention to sue should no steps be taken to restore the cedi’s soundness and value. Following no action on his part, she proceeded with legal action.
Reliefs Sought
The plaintiff contends that unless the court orders compensation, she would have no avenue for recovering the value lost in her investments. She is, therefore, asking the court to lift the corporate veil shielding the Bank of Ghana and hold both the institution and the former Governor jointly and severally liable.
Among other reliefs, she is seeking:
A declaration that the second defendant was grossly negligent in the management of the Ghana Cedi through the first defendant.
A declaration that the exchange rate losses she suffered are enforceable against both defendants, jointly and severally.
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