The Bank of Ghana (BoG) and its immediate past Governor, Dr. Ernest Addison, are facing a lawsuit filed by a private citizen who claims she has suffered significant financial losses due to the persistent depreciation of the Ghanaian cedi.
The plaintiff, Balbir Violet Allan, who identifies herself as an investor in government treasuries, alleges that the BoG and Dr. Addison were allegedly negligent in managing the national currency.
This legal suit is a landmark case, and it is unprecedented since it is the first time a citizen is directly seeking legal redress for economic harm caused by macroeconomic mismanagement.
Balbir Violet Allan, in her statement of claim argues that her investments and purchasing power have been severely eroded as the value of the cedi plummeted from GHS 4.26 to USD 1 in 2017, when Dr. Addison assumed office, to GHS 15.49 to USD 1 by February 2025, when he began his terminal leave.
Allan contends that the Central Bank has a legal obligation to ensure the stability of the national currency, a mandate she says was ignored or poorly executed during Dr. Addison’s tenure.
The dramatic currency decline, she claims, led to real exchange rate losses, reduced investment capital, and diminished purchasing power, effects felt not only by investors like her but by ordinary citizens across the country.
She is, therefore, seeking a judicial declaration that the Bank of Ghana, through its leadership, acted negligently and wants the court to affirm that the resulting financial losses are enforceable against both the institution and its former head.
This case has ignited new conversations about accountability for economic governance and the role of Central Banks in protecting citizens’ financial well-being.
The case could set a precedent for how economic mismanagement is interpreted under the law and whether central banks can be held liable for the fallout of policy decisions.
