Johannesburg - An investigation by South Africa’s anti-trust regulator into alleged foreign currency manipulation involving the rand may stem from a whistle-blower or “a confession”, a central bank official said.
The Competition Commission informed the central bank of its investigations without sharing details of the probe, South African Reserve Bank Deputy Governor Kuben Naidoo told reporters on Tuesday in Johannesburg.
“We have spoken with the banks and asked them to co-operate fully with the Competition Commission,” Naidoo said, as the central bank’s bank supervision department released its annual report for 2014.
The commission said on May 19 it’s investigating 11 entities, including local banks Standard Bank Group Ltd, Barclays Group Africa Ltd and Investec Ltd for alleged collusion in trades involving the rand. Finance Minister Nhlanhla Nene said on May 22 he was “very concerned” by the allegations and wanted to understand the impact on the country’s financial system.
The central bank’s own review of foreign-exchange trading is under way “and we haven’t found anything untoward in South Africa”, Naidoo said.