Despite recent comments from Zimbabwe’s ruling party that its pre-eminent body has recommended Old Mutual Zimbabwe’s “ejection” from the financial system, the group said business is operating normally.
Old Mutual Zimbabwe has found itself in the middle of a currency debacle with Zimbabwe’s authorities.
But the group maintains it’s business as usual.
“We are working with all relevant stakeholders to seek clarity on the matter.
“In line with the Group’s Responsible Business policy, Old Mutual has and will always continue to comply with all regulations and legislation within the countries where it operates.
“As a part of the community, Old Mutual remains committed to serving its customers and to contributing to the development and growth of the economy,” said Old Mutual.
The “matter” hinted at by the Old Mutual Group is likely the Old Mutual Implied Rate (OMIR), which the authorities seem to be blaming for driving inflation.
“We advise…that all our services and operations are continuing to run as normal. Old Mutual Zimbabwe Limited and its business units, including CABS, continue to be financially stable and sound.
“We will ensure to continue to update you of any significant developments on our official company platforms,” said the group.
Last month, the country’s monetary and fiscal authorities closed the stock exchange – Zimbabwe Stock Exchange – and suspended mobile money agents in a move they said was to fight illegal foreign currency market activities.
The ZSE is yet to resume trading.
Closure of the stock market was likely targeted at multiple-listed Old Mutual Zimbabwe, which provided proxy exchange rates (the Old Mutual Implied Rate) implied by their prices on foreign bourses such as the London Stock Exchange.