Old Mutual logo

OMU - Old Mutual News Story

44.65p 0.0  0.1%

Last Trade - 24/09/20

Mid Cap
Market Cap £2.12bn
Enterprise Value £1.63bn
Revenue £5.53bn
Position in Universe 256th / 1807

BREAKINGVIEWS-Zimbabwe launches quixotic war on modern finance

Tue 14th July, 2020 9:36am
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By Ed Cropley LONDON, July 14 (Reuters Breakingviews) - The government is blaming South African insurer Old Mutual and phone-based payment systems for a currency collapse. Its fondness of money printing is the more likely culprit. Attacking the stock market and mobile money will damage savings and confidence, and spur capital flight. Full view will be published shortly. On Twitter https://twitter.com/edwardcropley CONTEXT NEWS - Johannesburg-listed insurer Old Mutual is seeking clarification from Zimbabwe’s ruling party after a spokesman said it had decided to “eject Old Mutual from the financial system” because of its alleged role in stoking inflation, Bloomberg reported on July 12. Old Mutual denied any impropriety. - The move follows the government’s decision to suspend trading on the Harare stock exchange on June 26 and ban mobile phone-based payments, as part of efforts to address a slide in the value of the Zimbabwe dollar. - Prior to the suspension, Zimbabwe’s industrial stock index had posted year-to-date gains of 666% as Zimbabweans rushed to convert any available cash into equities as protection against hyperinflation. - The Zimbabwe dollar fell to 57 against the U.S. dollar on June 23 in the southern African nation’s first foreign currency auction since scrapping a fixed exchange rate of 25 to the greenback. On the black market, it is trading at around 105 to the U.S. dollar. - For previous columns by the author, Reuters customers can click on CROPLEY/ - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Zimbabwe dollar falls at first weekly forex auction urn:newsml:reuters.com:*:nL8N2E05C1 Bloomberg article https://www.bloomberg.com/news/articles/2020-07-12/old-mutual-seeking-to-clarify-zimbabwe-statement-on-expulsion BREAKINGVIEWS-New Zimbabwe dollar heading same way as old one urn:newsml:reuters.com:*:nL8N23W1GN ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Neil Unmack and Karen Kwok) ((ed.cropley@thomsonreuters.com; Reuters Messaging: ed.cropley.thomsonreuters.com@reuters.net))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.