Zimbabwe Finance Minister speaks on close Stock Market

Spread the love

The Minister of Finance and Economic Development, Professor Mthuli Ncube has said the Zimbabwe Stock Exchange (ZSE) that was recently suspended would only be opened when the investigations into alleged illicit dealings are complete.

The ZSE was suspended together with mobile money platforms after they were accused of fueling illegal forex dealings. Addressing journalists during a post-cabinet briefing in Harare on Tuesday, Ncube said:

It (ZSE) was suspended along with mobile money platforms for the same if not similar reasons which have to do with certain transactions that we have noticed that are being conducted through the platforms which border on illicit transactions and equally on the Stock Exchange.

Investigations are ongoing, the Stock Exchange will open once these investigations have been concluded or (when) we feel it is no longer necessary for the suspension to continue. We will make an announcement once we are ready to reopen.

The Zimbabwe Stock Exchange was last suspended in November 2008 after then Reserve Bank of Zimbabwe governor Gideon Gono said the Real Time Gross Settlement payment system was an “active vehicle for illicit foreign exchange parallel market dealings”.

The stock market only reopened in February 2009 after the economy moved to the multicurrency system.

Economists warn that this instability if left for long, risks the flight of investors as was the case before.

More: ZBC News