Old Mutual Zimbabwe is going to be indefinitely suspended from Zimbabwe Stock Exchange (ZSE) according to sources. The communication by state media and the Zanu PF party has caused Zimbabweans to believe Old Mutual is being de-listed, have their licenses withdrawn or closed.
Sources who spoke to Savanna News earlier in the day revealed the Zimbabwe Stock exchange has been directed to lift the suspension of other counters except Old Mutual Zimbabwe Limited.
Zimbabwe’s largest financial services group has been accused by from the Zanu PF government 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).
State Media and Zanu PF party have used strong words to announce what analysts believe is an indefinite suspension of Old Mutual Zimbabwe Limited from the ZSE.
The misinformation 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.
Words such as ejection from the financial system and banishing have been used to describe the latest action by Zimbabwe authorities as they battle to control inflation that has spiraled above 800%. The Zimbabwe currency has depreciated with over 650% since February last year when the Reserve Bank of Zimbabwe abandoned the 1:1 principle with the United States Dollar.
Zanu PF is reported to have welcomed the banishing of Old Mutual as they are accusing the green giant of saboteur. Speaking at the Heroes Acre recently, Zimbabwe President ED Mnangagwa referred to sheep in wolves’ skin as the reason being the collapse of the Zimbabwe Dollar.
The government recently suspended the stock exchange as well as blocking the use of mobile money. The country has seen more measures being introduced such as the designation of Zimswitch as a national payment system.
Zanu PF spokesperson Patrick Chinamasa was quoted by ZBC TV saying the party welcomes the ejection of Old Mutual from the financial system.