A retired Ghanaian citizen has initiated legal proceedings against the Bank of Ghana (BoG) and its former Governor, Dr. Ernest Addison, alleging severe negligence in the oversight of the Ghana Cedi.
In a legal document submitted to the Accra High Court, the plaintiff, Balbir Violet Allan, who resides in Adabraka, asserts that the significant decline in the value of the cedi during Dr. Addison’s leadership has greatly diminished her investments in government securities, particularly ESLA Bonds.
The lawsuit indicates that when Dr. Addison took office in February 2017, the exchange rate was GH¢4.26 to $1. However, by February 3, 2025, when he began his terminal leave, the rate had escalated to GH¢15.49 to $1, marking a depreciation of around 264 percent.
Represented by her attorney, John E. Baiden from The Liberty Institute Law Firm, the suit contends that the Bank of Ghana, under the direction of its Governor, was legally obligated to ensure a stable currency for the nation.
Instead, the second defendant is accused of permitting the cedi’s value to be determined exclusively by market dynamics, such as supply and demand in the foreign exchange market, leading to instability and fluctuations.
The plaintiff alleges that the former Governor did not create or execute a viable and lawful strategy to stabilize the currency. As Governor, Dr. Addison also presided over both the BoG’s Board and its Monetary Policy Committee, which are tasked with developing and implementing monetary policy initiatives, including currency stabilization efforts.
“The second defendant has managed and directed the operations of the first defendant in a way that has caused significant damage to the cedi, including to the plaintiff’s interests,” the writ asserts. It further argues that accountability for the Bank of Ghana’s legal obligations should align with those of the Governor, given his dual role as the head of the institution and chair of its policy-making committees.
Ms. Balbir stated that she formally informed Dr. Addison on May 30, 2024, of her intention to initiate legal proceedings if no measures were taken to restore the stability and value of the cedi. In light of his inaction, she moved forward with her lawsuit.
Reliefs Requested
The plaintiff argues that without a court order for compensation, she will have no means to recover the losses incurred from her investments. Consequently, she is requesting the court to disregard the corporate veil protecting the Bank of Ghana and to hold both the institution and the former Governor jointly and severally accountable.
In addition to other requests, she seeks:
– A declaration that the second defendant exhibited gross negligence in managing the Ghana Cedi through the first defendant.
– A declaration that the exchange rate losses she experienced are enforceable against both defendants, jointly and severally.
