A Ghanaian retiree has filed a lawsuit 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, resulting in substantial financial losses.
In a writ filed at the Accra High Court, the plaintiff, Balbir Violet Allan, a resident of Adabraka, claims that the cedi-dollar exchange rate experienced a drastic depreciation under Dr. Addison’s tenure. According to the lawsuit, when Dr. Addison assumed office in February 2017, the exchange rate was GH¢4.26 to $1. By February 3, 2024, when Dr. Addison proceeded on terminal leave, the rate had surged to GH¢15.49 to $1, marking a staggering 264% depreciation.
The retiree argues that this decline in the cedi’s value has significantly diminished the value and purchasing power of her investments in government securities, particularly ESLA Bonds, which are tied to the national currency’s performance.
In the legal action, filed by lawyer John E. Baiden from The Liberty Institute Law Firm, Ms. Allan contends that the law mandates the Bank of Ghana to ensure a stable currency, but Dr. Addison allegedly allowed the cedi’s value to be governed solely by market forces, particularly demand and supply in the foreign exchange market. She further claims that the former Governor did not take adequate measures to stabilize the cedi during his time in office.
As Governor, Dr. Addison was also the Chairperson of both the Bank of Ghana’s Board and its Monetary Policy Committee, which, according to the plaintiff, had a legal responsibility to formulate and implement measures aimed at stabilizing the cedi. Ms. Allan’s lawsuit asserts that the former Governor’s failure to act has led to significant harm, both to the currency and to her investments.
In the writ, the plaintiff noted that she formally notified Dr. Addison on May 30, 2024, of her intention to take legal action if no measures were taken to restore the cedi’s stability. However, she claims no remedial steps were taken, prompting the current lawsuit.
Ms. Allan is now asking the court to lift the corporate veil shielding the Bank of Ghana and hold both the institution and Dr. Addison jointly and severally liable for her investment losses. She seeks a declaration that the former Governor was grossly negligent in the management of the cedi and that the losses she suffered due to the exchange rate depreciation are enforceable against both defendants.
The plaintiff is also requesting compensation for the financial damages caused by the decline in the cedi’s value and the associated impact on her investments.
