BoG taken to Supreme court over weakening Cedi



from MASAHUDU KUNATEH in Accra, Ghana
ACCRA – THE Supreme Court has given the Bank of Ghana (BoG) a fortnight to submit its statement of case, in the suit filed against it by a renowned private legal practitioner, Dr John Ephraim Baiden, on the continuous depreciation of the cedi.

Baiden dragged the BoG to the Supreme Court for allegedly failing to stabilize the cedi.

He based his challenge on Article 183(2)(a) of the 1992 Constitution.

It reads, “The Bank of Ghana shall promote and maintain the stability of the currency of Ghana and direct and regulate the currency system in the interest of the economic progress of Ghana.”

He also cited Section 4(b) of the Bank of Ghana Act, 2002, which says the central bank “shall promote by monetary measures the stabilization of the value of the currency within and outside Ghana.”

The cedi has depreciated against the dollar by over 27 percent this year alone.

BoG in reaction to the suit, filed a writ of preliminary objection to strike out the suit, indicating the Supreme Court was not the forum to address the issue.

The court slated Wednesday to rule on the preliminary objection, but could not because the BoG had not submitted its statement of case to defend the suit.

The plaintiff, Baiden said that the central bank was not performing its role, stipulated by law.

“They need to file their defense. If they have delivered a stable currency for the country, they should be able to speak to that. Their record speaks for itself. Their record is a record beyond comprehension.

“It is not central banking when it comes to managing our currency. They are not practicing central banking, they are practicing central destruction,” he said.

He added he had mounted a valid challenge.

“I have a case because it is so clear that they are in breach of the constitution and also in breach of their legal operating framework which is the Bank of Ghana Act 2002.”

– CAJ News





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Posted by on Jul 23 2014. Filed under Featured, Finance, Finance & Banking. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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