SACP: Currency manipulation must be treated as criminal offence

This call comes amid anger after at least 28 commercial banks were implicated in price fixing involving the rand.

Last week, the Competition Commission said British multinational Standard Chartered had agreed a settlement for its involvement.

Among the implicated banks are both local and foreign-controlled multinational banks.

The banks included Barclays Plc, Macquarie Group Ltd., Nomura Holdings Inc., Standard Bank Group Ltd., Bank of America Corp., JPMorgan Chase & Co., HSBC Holdings Plc, Credit Suisse Group AG, Commerzbank AG, BNP Paribas SA, Investec Ltd., and Australia & New Zealand Banking Group Ltd.

Standard Chartered admitted liability for manipulating the dollar-rand pair and agreed to pay an administrative penalty of approximately R43 million.

In 2017, Citibank, an American-controlled multinational, also paid a fine of R70 million.

SACP national spokesperson Alex Mashilo said the party is calling for currency manipulation to be treated as a criminal offence.

"The SACP has called on the government to move South Africa beyond fines to prosecute those who are manipulating our currency exchange rate by keeping their conduct for what it is: corruption, a criminal offence, an act of economic sabotage and regime-change conduct.

"Like all other forms of corruption and crime, they must face criminal prosecution and jail sentences."

Meanwhile, the African Transformation Movement expressed disappointment at Parliament’s refusal to hold an urgent debate on the manipulation of the rand.

The party said the collusion has had a catastrophic effect on South Africans.

In response to the party's request for a debate, Deputy Speaker Lechesa Tsenoli said it was premature to debate the issue as there are ongoing legal proceedings.

ATM has since written to President Cyril Ramaphosa asking him to set up a commission of inquiry into the currency manipulation.

"The Competition Commission scope of the report is only up to 2013. We do not know that the very same injustices are taking place beyond 2013 up until now. We need to be able to explore everything contained in that report," said the party's Mxolisi Makhubu.

"We hope that the president is going to put the people of South Africa first and actually grant us this commission, and we need to be able to protect our people. The South African Reserve Bank, how did they not pick it up that this is happening?"

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