Court dismisses BoG's application,clears path for suit against cedi depreciation
By DL News
Published
Updated
2 min read
Justice Audrey Kocuvie-Tay, who presided over the matter, ruled that the suit raised legitimate legal questions rooted in gross negligence and could not be described as an abuse of court process, as argued by BoG’s legal team. She added tha...
The Accra High Court has dismissed a preliminary application by the Bank of Ghana (BoG) seeking to strike out a lawsuit filed by a retiree over the sharp depreciation of the Ghanaian cedi.
Justice Audrey Kocuvie-Tay, who presided over the matter, ruled that the suit raised legitimate legal questions rooted in gross negligence and could not be described as an abuse of court process, as argued by BoG’s legal team. She added that the plaintiff had a justiciable cause of action deserving a full hearing.
The decision now paves the way for the court to hear the substantive case brought by Balbir Violet Allan, a retiree and resident of Adabraka, who is suing both the Bank of Ghana and its immediate past Governor, Dr Ernest Addison.
Background
Filed earlier this year, the suit claims that Dr Addison, who assumed the governorship in 2017 when the cedi-dollar rate stood at GH¢4.26, left office in 2025 with the rate having climbed to GH¢15.49 — a depreciation of approximately 264%.
Allan argues that this massive decline in the cedi’s value eroded the real worth of her investments, particularly in government instruments like ESLA Bonds, thereby diminishing her purchasing power and capital.
She further contends that Dr Addison, during his tenure, failed to introduce or execute any credible, legally compliant plan to stabilise the national currency. Instead, the suit alleges, the former Governor allowed the cedi’s value to be dictated by market forces, creating volatility and uncertainty in the forex market.
The plaintiff is calling on the court to pierce the corporate veil of the Bank of Ghana and hold both the institution and Dr Addison jointly and severally liable for her losses.
Among other reliefs, she is seeking:
A declaration of gross negligence in the management of the cedi;
A ruling that the exchange rate losses she suffered are enforceable against both defendants;
Compensation for the diminished value of her investments.
Allan insists that unless the court intervenes, she will have no remedy to recover the financial loss suffered due to the central bank’s alleged mismanagement.
