A private citizen has filed a lawsuit against the Bank of Ghana and its former Governor, Dr. Ernest Addison, alleging gross negligence in managing the nation’s currency.
Balbir Violet Allan, an investor in government treasuries, claims the cedi’s drastic depreciation from 4.26 to 15.49 against the U.S. dollar between 2017 and 2025 severely eroded her purchasing power and investment value.
In court documents submitted by her legal representative, Dr. John Baiden, a law lecturer, Allan argues the central bank failed its legal mandate to stabilize the cedi’s value. The writ highlights that under Addison’s tenure, which began in 2017, the exchange rate surged from 4.26 to 15.49 cedis per dollar by February 2025, rendering the currency among the world’s poorest performers. Allan seeks a judicial declaration of negligence and a ruling holding the bank and Addison liable for enforceable compensation.
The plaintiff attributes her financial losses directly to the central bank’s policies, asserting that Addison’s management lacked due care. While the case hinges on statutory interpretation of the Bank of Ghana’s responsibilities, it raises broader questions about accountability in monetary governance. Central banks globally often face scrutiny during currency crises, though legal challenges remain rare. Ghana’s cedi has historically struggled with volatility, influenced by external debt pressures and commodity market fluctuations—factors typically weighed in macroeconomic assessments.
The outcome could set a precedent for similar claims, emphasizing the delicate balance between institutional mandates and economic realities. For now, the court’s interpretation of “stabilization” under Ghanaian law will determine whether fiscal policy decisions translate to enforceable legal obligations.
