The Supreme Court has set July 22, to rule on the case where a private legal practitioner, Dr John Ephraim Baiden is asking the court to order the Bank of Ghana (BoG) to introduce measures to stabilize the cedi.
[contextly_sidebar id=”CQcGanhiicEEZZ6vVGiQCHYxfSqMT6xx”]Mr. Baiden who filed the case in July 2014 when the cedi was depreciating rapidly said he has lost wealth through foreign exchange rate losses and is pleading with the court to direct BoG to provide a stable currency.
Before Mr Baiden filed the case in 2014, the Cedi had depreciated by about 40% against the dollar and other major currencies, a situation which forced traders to increase prices of goods and services, thus increasing the cost of living for Ghanaians.
Dr. Baiden however argued that the situation got out of hand because Bank of Ghana failed in its duties to stabilize the Ghanaian currency.
According to Dr Baiden, the BoG is enjoined by the 1992 Constitution and the Bank of Ghana Act to maintain a stable currency for the benefit of Ghanaians and businesses.
Perpetual injunction
Among the reliefs being sought by the applicant, who joined the Attorney-General to the suit, is an order for perpetual injunction directing the BoG to refrain from deferring to a floating exchange rate regime in the conduct of its monetary policy.
He is also seeking a declaration that upon a true and proper interpretation of Article 183 (2) (a) of the 1992 Constitution of Ghana and the Bank of Ghana Act, 2002, Section 4 (b), BoG has neither promoted nor maintained a stable currency for the Republic of Ghana.
Dr Baiden, who is also praying the court to grant other orders it may deem appropriate, holds the view that the BoG knew it lacked the requisite reserves or exchange rate stabilization fund to effectively intervene to give the cedi a stable value on the currency market.
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By: Fred Djabanor/citifmonline.com/Ghana