Old Mutual Zimbabwe De-Listed From ZSE, Ejected From Financial System
Zimbabwe’s largest Insurance services giant, Old Mutual Zimbabwe Limited (OMZL) has been delisted from the ZSE, a move government described as ejecting from the Financial system.
The Zanu PF government accused OMZL for causing the black market foreign exchange rate rise rapidly by virtue of them being dual listed on the ZSE and the Johannesburg Stock Exchange (JSE).
The parrarel market has been using the Old Mutual Implied rate as an indicative rate for the local currency.
Zimbabwe’s RTGS dollar officially floats against other international currencies on the Interbank Foreign Exchange auction. However, a significant amount of transactions happen outside the official market, at an unofficial exchange rate.
One of the few gauges of the Zimbabwe exchange rate is the so-called ‘Old Mutual Implied Rate’, a comparison of the price of shares of Old Mutual South Africa on JSE and OMZL on the ZSE.
The Tabloid is reliably informed that the Zimbabwe Stock exchange has been directed to lift the suspension of other counters except Old Mutual Zimbabwe Limited.
The ZSE had suspended trading in compliance with a government directive after the bourse was listed among platforms allegedly being used to sabotage the economy.
Old Mutual is yet to respond to the ban, However analysts believes the move is likely to cause pandemonium to Old Mutual customers including those of Zimbabwe’s second largest bank Old Mutual owned Central Africa Building Society – CABS.