 |
| On the currency track |
Upon reading the story of Mr. John
Ephraim Baiden, a lawyer and banking lecturer who has filed a petition against the Bank of Ghana (B&FT, 'BoG ordered to
respond to Cedi case', 24 July, 2014), I think the BoG should brace itself for
more lawsuits. Mr. Baiden has taken on the BoG on their inability to perform
their duty of stabilizing the Cedi as mandated by law.
Article 183(2)(a) of the 1992 Constitution of
Ghana says:
“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” and section 4(b) of the Bank of Ghana Act,
2002, provides that the central bank “shall promote by monetary measures the stabilization
of the value of the currency within and outside Ghana.”
Like a wounded lion, the BoG
requested that the case be thrown out of the court because the Supreme Court
where the case was filed was not the best forum. They had wanted to rule out
the case on this technical ground however, Lawyer Baiden’s petition was upheld
as he established the fact that his case primarily involves a constitutional
provision – Article 183(2) (a) - which requires interpretation as to what a
stable currency is, and what is meant by maintaining a stable currency. This interpretation could mean a profound impact
on economic management given the invitation to
the Supreme Court to define a stable currency.
If the same cedi can buy 27% less
dollars than it could buy in January (B&FT, 2014). I wonder what else could
be the interpretation of an unstable currency. Mr. Baiden’s reason for filing the case was that
the falling cedi has caused him to loose wealth
through exchange rate losses.
Have you lost wealth because of
the harsh economy? I have. Every time I make a purchase, I feel the harsh
strain it puts on my budget as the increase is always attributed to the dollar
rise. On a lighter note, I thought this era was supposed to be Africa Rising
not Dollar Rising. BoG and the attorney should either ensure that policies
implemented results positively on economic growth or hire legal practitioners
to battle their lawsuits.
#author #usiancedi #cedibolt #motherghana
