‘There must be consequences,’ says Ntshavheni on banks’ currency manipulation

Minister in the Presidency Khumbudzo Ntshavheni says there must be consequences for dollar-rand exchange manipulation by local and international banks, reported last week by the Competition Commission, calling the act of currency manipulation an attempt at collapsing the economy.

“We have maintained over the period that the performance of the rand and sometimes the performance of the economy has been manipulated by the private sector, which has no interest in the development of this country, which continues to engineer and do machination to make sure that the government collapses,” she said.

“That’s why they also saw fit in the narrative that there is a collapsing state and a collapsing economy. Because that is what they wish for and their actions do that. But despite those efforts, the South African economy continues to be resilient.”

Ntshavheni was briefing reporters in Pretoria on Monday regarding the outcomes of a cabinet meeting which took place last week. The briefing comes after Standard Chartered came clean on its role in currency manipulation, agreeing to pay a R42.7m penalty.

Ntshavheni welcomed reports that Standard Chartered has agreed to testify against other banks involved in the currency manipulation, but said the matter cannot be left unaddressed.

“People cannot be left untouched because they wanted to collapse this country. There must be consequences and there will be consequences,” she said.

When asked what would be the appropriate consequences, Ntshavheni said this should be determined by the evidence that comes forth once Standard Chartered testifies.

“We can’t pre-empt what those consequences will be, but based on the evidence that will be provided, then the necessary consequences will be meted.”

The rand has been above the R18 mark against the dollar since August this year.

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