Old Mutual Seeks Clarity On ZANU PF Official’s ‘Ejection’ From Zim Remarks

Old Mutual Zimbabwe said on Monday it was seeking “clarity” on its future after claims by a senior ZANU PF official that there had been a decision to “eject” the company out of Zimbabwe’s financial system.

Speaking after a politburo meeting on Friday, ZANU PF acting spokesperson Patrick Chinamasa announced that the party welcomed the decision to eject Old Mutual from the financial system of Zimbabwe.

Chinamasa also said a decision had been made to close Ecocash agents, saying Old Mutual and the mobile money agents had caused runaway inflation through illegal parallel exchange market rates.

Chinamasa, however, did not disclose what decision regarding the company was made, and by who.

Reacting to media reports following Chinamasa’s pronouncements, Old Mutual said:

We are working with all relevant stakeholders to seek clarity on the matter.

We advise you that all our services and operations are continuing as normal.

Old Mutual Zimbabwe Limited and its business unit including CABS, continue to be financially stable and sound.

… As part of the community, Old Mutual remains committed to serving its customers and to contribute to the development and growth of the economy.

Zimbabwean authorities have lately been alleging that the Old Mutual Implied Exchange Rate (OMIR) was one of the instruments driving the devaluation of the local currency.

OMIR is a gauge of the value of the Zimbabwe dollar which is based on the difference in the value of the firm’s shares in London and Harare.

Some players in the market use the OMIR to price their goods and services as a true reflection of the value of the local currency.

Currently, the OMIR stands at ZW$122.22 to the United States dollar, nearly double the official Zimbabwean exchange rate of ZWL$65.87.

More: New Ziana

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