The lawsuit filed by private investor Balbir Violet Allan against the Bank of Ghana and its former Governor, Dr. Ernest Addison, represents a significant legal challenge to the institution’s management of the Ghanaian economy and its impact on individual financial well-being. Allan’s core argument centers on the Bank of Ghana’s alleged failure to maintain currency stability, a key component of its mandate. She points to the dramatic depreciation of the cedi against the US dollar, plummeting from GHS 4.26 in 2017 to GHS 15.49 in 2025, as concrete evidence of this failure. This precipitous decline, she contends, has directly eroded the value of her investments in government treasury instruments and significantly diminished her purchasing power, representing a tangible financial loss directly attributable to the Bank of Ghana’s mismanagement.
Allan’s legal action, represented by law lecturer Dr. John Baiden, seeks a judicial declaration holding the Bank of Ghana accountable for its alleged negligence in fulfilling its statutory duties. The lawsuit argues that the economic consequences stemming from the Bank’s actions, or lack thereof, should be recognized as enforceable liabilities. This argument establishes a direct link between the Bank’s alleged mismanagement and the financial harm suffered by Allan, seeking to establish a legal precedent for holding public financial institutions directly responsible for the economic repercussions of their policies on individual investors. The inclusion of Dr. Addison as a defendant in the suit underscores the plaintiff’s assertion that his leadership played a crucial role in the period of pronounced exchange rate instability.
The lawsuit highlights the cedi’s depreciation to GHS 15.49 against the dollar at the time of Dr. Addison’s departure in February 2025 as a stark indicator of the Bank’s performance under his leadership. Allan characterizes this exchange rate as one of the worst performances by a central bank in recent global history, further emphasizing the gravity of the alleged mismanagement and its impact on the Ghanaian economy. This comparison serves to contextualize the severity of the cedi’s decline and reinforces the argument that the Bank of Ghana’s actions deviated significantly from acceptable standards of central bank management, resulting in substantial financial harm to individuals like Allan.
The unprecedented nature of this lawsuit in Ghana adds another layer of significance to the case. It marks a potentially groundbreaking legal challenge to the traditionally held notion of immunity or limited liability for public financial institutions and their leaders. Should the court rule in Allan’s favor, it could establish a precedent for holding these institutions and individuals directly accountable for economic mismanagement and its tangible impact on private citizens. This could have far-reaching implications for the future conduct of monetary policy and the relationship between the central bank, the government, and individual investors.
The case raises fundamental questions about the Bank of Ghana’s responsibility in managing the national currency and its accountability to the public. Allan’s argument centers on the idea that the Bank’s core mandate includes maintaining a stable currency and that its failure to do so constitutes a breach of its duties, leading to demonstrable financial harm. This challenge to the Bank’s performance directly confronts its role in safeguarding the economic well-being of Ghanaian citizens and raises concerns about the potential consequences of unchecked monetary policy decisions on individual financial stability.
The legal battle between Allan and the Bank of Ghana, therefore, represents more than just a dispute over individual financial losses. It represents a broader challenge to the Bank’s performance and its accountability to the public. The outcome of this case could significantly influence the future relationship between the central bank and private investors, potentially setting a new standard for transparency and accountability in monetary policy and economic management in Ghana. The court’s decision will undoubtedly have a lasting impact on the landscape of financial regulation and public accountability in the country.
