Alleged bank collusion may have increased volatility of rand - economist

Seventeen banks have now been referred to the Competition Tribunal for manipulating the value of the rand.

The banks include foreign banks like JPMorgan Chase and Credit Suisse, and local institutions such as Absa Bank, Standard Bank and Investec.

Economist Professor Simon Roberts advises that the banks are alleged to be in collusion with each other - which is very different from corruption.

According to Roberts, the alleged bank collusion may have potentially increased the volatility of the rand.

There would be more volatility and they'd creating more economic uncertainty which is bad for the real economy.

Prof Simon Roberts, Executive Director of the Centre for Competition, Regulation and Economic Development at UJ

He explains that traders from across the world used many platforms to distort the market.

The traders are making and manipulating the market to increase the difference that they are making between what they are paying to get the dollars and what they are getting when they sell them to get rands again.

Prof Simon Roberts, Executive Director of the Centre for Competition, Regulation and Economic Development at UJ

He says it is not surprising that South African banks have been involved in this global phenomenon.

Roberts unpacked the implication of the allegations, competition among currency markets and regulation required.

Take a listen to the full explanation:


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Zuma lashes out at 101 ANC stalwarts in policy conference opening salvo

Zuma lashes out at 101 ANC stalwarts in policy conference opening salvo

President Zuma went 'off script' on Friday when he castigated his detractors saying many denied being on the 101 stalwarts list.

Mr. Tlhabi bids Mrs Tlhabi farewell on her last radio show #FarewellRedi

Mr. Tlhabi bids Mrs Tlhabi farewell on her last radio show #FarewellRedi

Brian Tlhabi says his wife, Redi Tlhabi makes him super happy and continues to wish her the best with her future endeavours.

Timing of bank collusion case can't be ignored-  political analyst

Timing of bank collusion case can't be ignored- political analyst

Competition Tribunal to investigate 17 major banks for currency manipulation, at a time when Gupta family was in the spotlight.

Competition Commission has strong evidence against banks involved in collusion

Competition Commission has strong evidence against banks involved in collusion

17 banks including Absa, Standard Bank and Investec have been referred to the Competition Tribunal for manipulating currency.

Three of SA's big banks accused of collusion

Three of SA's big banks accused of collusion

Competition Commission referred a collusion case to the Tribunal for prosecution against 17 banks.

The rand is back!  South African currency hits 18-month high against the dollar

The rand is back! South African currency hits 18-month high against the dollar

The South African currency appears to have benefitted from better than expected inflation figures.

Popular articles
We're not just cyclists - CT man turns punch-up with driver into safety message

We're not just cyclists - CT man turns punch-up with driver into safety message

He was punched in the face by a motorist last week and tracked the driver down for a meet-up, instead of laying charges.

[WATCH] The spectacular moment AB de Villiers bent the laws of physics

[WATCH] The spectacular moment AB de Villiers bent the laws of physics

The world now knows never to underestimate the athletic form of SA cricketer AB de Villiers after this gravity-defying catch.

Brace yourself the cold is not going anywhere

Brace yourself the cold is not going anywhere

Forcaster, Kumsa Masizana says a cut-off low resulting throughout most parts of the country.

What's better than sex with your partner? Sex with YOURSELF! #MasturbationMonth

What's better than sex with your partner? Sex with YOURSELF! #MasturbationMonth

It's time to dim the light, lie back, relax and enjoy a bit of one-on-one time - with yourself!

[LISTEN] Dailene, the lady behind the video from Thursday's heist in Boksburg

[LISTEN] Dailene, the lady behind the video from Thursday's heist in Boksburg

Another heist was carried out in Boksburg on Thursday morning and led to five people being arrested.

Blind athlete sues popular winery after guide dog barred entry

Blind athlete sues popular winery after guide dog barred entry

Paralympian Hendri Herbst will take Durbanville Hills to court after his guide dog was denied entry inside the restaurant in 2014.

Health Minister proposes scrapping of medical aid co-payments

Health Minister proposes scrapping of medical aid co-payments

The eradication of medical aid co-payments is one of a number of changes to the medical aid scheme proposed by Aaron Motsoaledi.

[LISTEN] Is it Yanny or Laurel? Test your ears!

[LISTEN] Is it Yanny or Laurel? Test your ears!

What's Gone Viral with Khabazela brings you tweets, posts and YouTube videos that have social media talking.