Bank collusion may have made rand stronger - financial analyst

Intellidex financial analyst, Stuart Theobald, says it's difficult to measure the impact of currency manipulation by 17 major banks who have now been referred to the Competition Tribunal by Competition Commission.

The 17 banks including Absa, Standard Bank and Investec have been involved in collusion, faking bids to distort supply and demand of the currency from at least 2007.

Any impact it had would have [been] slight and very temporary.

Stuart Theobald, Intellidex financial analyst

We certainly can't say it has the effect of driving the rand weaker, it might very well have driven it stronger.

Stuart Theobald, Intellidex financial analyst

In any event it only concerned 60 seconds during a trading day, so not something that would have had much dramatic impact in a long run or even a long day.

Stuart Theobald, Intellidex financial analyst

Theobald says this may be linked to the ongoing battle between the banks and Gupta family and their supporters, who are also pro-President Jacob Zuma.

On Thursday, Zuma said government is committed to protecting the country's economy against market abuse, price fixing and collusion.

Listen to Stuart Theobald below explaining the Competition Act on bank collusion...


This article first appeared on 702 : Bank collusion may have made rand stronger - financial analyst


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