A private citizen has filed a lawsuit against the Bank of Ghana (BoG) and its former Governor, Dr. Ernest Addison, citing significant exchange rate losses that have impacted her investments. The plaintiff, Balbir Violet Allan, who identifies herself as an investor in government treasuries, alleges that the substantial depreciation of the Ghanaian cedi since 2017 has severely diminished her purchasing power and investment returns.
Ms. Allan's legal action, initiated through a writ prepared by law lecturer Dr. John Baiden, seeks a declaration from the High Court that the Bank of Ghana, under the leadership of Dr. Ernest Addison, was grossly negligent in its management of the national currency. She is also requesting the court to rule that the exchange rate losses she incurred are legally enforceable against both the Bank of Ghana and Dr. Ernest Addison.
The plaintiff's case centers on the statutory mandate of the Bank of Ghana to ensure the stabilization of the cedi's value. She emphasizes that when Dr. Addison assumed office in 2017, the cedi to US dollar exchange rate was 4.26 GHS to 1 USD. However, by February 3, 2025, when Dr. Addison proceeded on terminal leave, the exchange rate had deteriorated to 15.49 GHS to 1 USD. Ms. Allan contends that this drastic depreciation resulted in the Ghanaian cedi becoming one of the world's worst-performing currencies during Dr. Addison's tenure.
According to the plaintiff, this significant devaluation of the cedi has directly resulted in her experiencing substantial exchange rate losses, a marked erosion of her purchasing power, and significant investment capital losses. She argues that Dr. Addison failed to exercise due care and diligence in his management of the currency, thereby contributing to the financial harm she has suffered.
The lawsuit underscores the growing concern among investors and the public regarding the volatility of the Ghanaian cedi and its impact on the economy. The outcome of this legal challenge will be closely watched, as it raises critical questions about the responsibilities of the Bank of Ghana in maintaining currency stability and the potential liability of its leadership in cases of significant economic losses.
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