Strike out suit against BoG and former Governor over cedi depreciation, there's no reasonable course of action - BoG to court

The Bank of Ghana (BoG) has filed a motion in the High Court. They want the court to dismiss a lawsuit from a Ghanaian retiree. The retiree claims gross negligence by the bank and its former Governor, Dr. Ernest Addison.

The BoG argues that the plaintiff's claims lack reasonable cause. The motion will be presented by BoG's counsel on Thursday, May 15. They also state that the application misuses the court's process.

The plaintiff, Balbir Violet Allan, lives in Adabraka. She states that when Dr. Addison became Governor in February 2017, the cedi-dollar exchange rate was GH¢4.26 to $1. By February 3 this year, it had risen to GH¢15.49 to $1, a depreciation of about 264 percent.

In this case, the BoG is the first defendant and Dr. Addison is second. The plaintiff claims this decline has caused significant losses in her investments, especially in ESLA Bonds.

Lawyer John E. Baiden filed the suit for Ms. Allan at the Accra High Court. She argues that the law requires BoG to provide a stable currency. However, she alleges that Dr. Addison allowed market forces to dictate cedi value.

Ms. Allan claims he failed to create any credible plan for currency stabilization as required by law. As Governor, he also chaired BoG’s Board and Monetary Policy Committee responsible for monetary policy measures.

She states that his management harmed both her investments and the cedi's value significantly. On May 30, 2024, she notified him of her intent to sue if no action was taken to restore cedi stability.

Since no remedial action occurred, she initiated legal proceedings against them.

In her reliefs sought from the court, Ms. Allan requests an order for recovery of her losses due to investment depreciation. She asks for both defendants—BoG and Dr. Addison—to be held jointly liable for these losses.

Additionally, she seeks a declaration stating that Dr. Addison was grossly negligent in managing the Ghana Cedi through BoG and that her exchange rate losses are enforceable against both defendants.