Standard Bank, Nedbank denies manipulating rand

The currency collusion report by the commission has charged 28 banks with involvement in a scheme to manipulate the rand-US dollar exchange rate between 2007 and 2013.

Standard Bank, Absa, Investec, Citibank, First Rand Bank, Barclays, Merrill Lynch, HSBC, Nedbank, and Standard Chartered are some of the banks listed.

The Competition Commission said Standard Chartered admitted liability in the case and agreed to pay a fine of almost R43 million.

Standard Bank and Nedbank have denied involvement in the anti-competitive behaviour of fixing the USD/ZAR exchange rate or manipulating the rand's value.

Standard Bank said the claims are false and has since vowed to use every avenue in the law to defend itself.

"These comments incorrectly link various unrelated and unfounded allegations with the Competition Commission inquiry currently under adjudication before the Competition Appeal Court in South Africa.

“We take this opportunity to re-iterate Standard Bank’s position. Standard Bank has not manipulated the value of the Rand.

“Standard Bank has not engaged in any anti-competitive or criminal conduct. All such claims are false. Standard Bank will continue to use every avenue provided to it in law to defend itself against these false allegations," it said in a statement.

Nedbank also vowed to defend itself while saying it would abide by the outcome of the appeal.

"Nedbank denies that it was involved in anti-competitive behaviour of fixing the USD/ZAR exchange rate, and the Competition Commission has failed to provide any evidence to support said allegations.

“There is no evidence, either from Nedbank’s own investigations or presented by the Competition Commission, of any Nedbank traders participating in any of the so-called chatroom conversations or in any conspiracy in respect of rand trading. Nedbank will continue to defend itself against these claims.

“We are unable to comment further on the matter as it is still pending before the courts. Nedbank respects the judicial process and will abide by the outcome of the appeal," the bank said.

Meanwhile, the National Treasury said it will introduce further legislation to ensure South African financial markets are fair and transparent and operate with integrity.

Treasury says whilst the wrongdoing described by the Competition Tribunal harmed individual clients, it would not have influenced the depreciating trend of the currency.

"The value of the currency today, which has depreciated against the dollar, and the resulting impact on prices, should not be attributed to these instances of misconduct between 2007 and 2013," it said.

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