Local And International Banks Accused Of Rigging South Africa's Currency By Watchdog

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Local And International Banks Accused Of Rigging South Africa's Currency By Watchdog.

Global giants HSBC, JP Morgan and Barclays are among the 17 commercial banks mentioned as part of a two-year investigation.

Banks flourished, using the online chat rooms in order to co-ordinate fictitious offers and bids for them to sway the market. That is a message passed across by the competition commission.

It has now waiting for the banks to be punished by being given a fine of 10 percent of the in-country annual turnover.

The South Africa banks are likely now to get prosecuted at country's Competition Tribunal due to the accusation of currency manipulation, in which the investigators say confidently goes back and as far as 2007.

Several banks indeed have already passed that they will coordinate with the authorities.

South African President, Jacob Zuma who was speaking in parliament previously, welcomed the competition investigation of the commission, saying that the South African government was on its toes in order to act against distorting the financial markets for the protection of his country's economy.

The South African president also reiterated the government's commitment to the establishment of a state bank. He also added that fresh players have to be allowed to enter in order to diversify the financial sector of the country’s environment.

Foreign exchange fights have rocked the international markets all through the past 10 years and it's now the turn of South Africa to host one.

The governing ANC party puts it that the current developments do expose an ethical crisis in S.A banking sector.

The opposition Economic Freedom Fighters calls for the banks to acquire their operating licenses fast revoked.

However, the opposition party, being the Democratic Alliance, says that the case timing is suspicious, given in his State of the Nation was addressed last week, Jacob Zuma referred the competition authorities being one of the tools which would be used to make radical economic transformation move forward.

Even if the 17 banks, as expected, come to a settlement with the S.A authorities, that whole problem will remain another blow in the sector's reputation.

It has also lent certain politicians a more ammunition for them to bash the banks and yet again - Jacob Zuma lately blamed the country's 4 largest banks of the control of the economy.

The S.A rand has closely halved in its value against the United States dollar over the past 5 years, as the South Africa goes through in an economic crisis.

The major international banks have had to pay billions, in fines, U.S dollars since a global scandal that happened in 2013 over the rig of the foreign exchange markets.

Some Twitter subscribers in South African, have been making use of the hashtag #BanksCollusion in order to urge the national media to take part in intensifying their reports.

They say that largely the white-owned media organizations have been kind on corruption reporting in big business and whose upper echelons being still dominated by the white management, despite South African’s majority black population.

Apartheid, that legalized the racial discrimination against the black population, did end in South Africa in the year 1994 with the election of Nelson Mandela who passed in 2013.

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Banks Accused Of Rigging South Africa's Currency

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