Bank of Ghana Sued over Depreciation

A private legal practitioner, Dr.John Ephraim Baiden has dragged the Bank of Ghana to the Supreme Court over the depreciation of the cedi.

He is asking the Court to order the Bank to put in measures to provide a stable currency.

The plaintiff who has lost wealth through foreign exchange rate losses is urging the Supreme Court to issue an order of mandamus on the Bank of Ghana or its Governor and the Board of Directors to provide a stable currency and a change from a floating exchange regime to a reasonable adjustable peg regime.

He is further urging the Court to order the BOG to abrogate the present dual exchange rate or multiple exchange rate system to a single exchange rate system.

The Court is also to decide on Dr. Baiden's call for an order directed at the BOG to provide Ghana a one is to one or nearer relationship with the leading global reserve currency as occurred in 2001. 

Dr Baiden who is also praying the Court to grant other orders it may deem appropriate, holds the view that the BOG knows it lacked the requisite reserves or exchange rate stabilization fund to effectively intervene to give the cedi a stable value on the currency market.

He further argued that unless the court stopped it, the BOG would continue to utilize its unworkable monetary measures.

He was of the view that the BOG is clearly out of its mandate and must therefore be whipped back to line.

The court has fixed the 22nd of this month for the hearing.

SOURCE: Daily Graphic