"Don’t Accuse Young Men On 4th ST, Old Mutual The Culprit Of Exchange Rate" - Mutsvangwa

Former Presidential Advisor Ambassador Chris Mutsvangwa has accused Old Mutual of causing parallel market financial distortions where the exchange rate has excessively risen.

Mutsvangwa was speaking on ZBCtv current affairs programme, Face the Nation, on Wednesday night. He stated the reason why Old Mutual could be raising the rates. He said:

By virtue of Old Mutual’s share certificates being able to be traded on principally these three stock exchanges, it means you can buy Old Mutual (shares) with RTGS today…go to the London Stock Exchange where Old Mutual is listed and liquidate them for Pound. 

But that liquidation has to be supported by the currency from the country of origin which is Zimbabwe, so the result was that instead of the water flowing down the valley, the water started going up the mountain, so the capital stock of Zimbabwe was hemorrhaged by that arrangement and today that attribution to Old Mutual gives what is now called Old Mutual Implied Exchange Rate (OMIR).

He added that the authorities must cease to blame the money exchangers since they do not determine the rate. He added:

I have said it before that if there is commotion in the kraal, don’t go for the calves, go for the big bull.

You don’t accuse the young men on Fourth Street as people who are the main movers of the currency, no that’s wrong.

More: The Chronicle