ZSE formally suspends trading following Government directive

THE Zimbabwe Stock Exchange (ZSE)  said on Monday it had suspended trading “until further notice” in compliance with a government directive after the bourse was listed among platforms allegedly being used to sabotage the economy.

Government last Friday singled out mobile money platforms and the ZSE  as vehicles that were being used to undermine the economy through tinkering with the exchange rate by promoting illegal exchange rates and currency trades.

And while the government wanted to suspend the use of mobile money platforms across the board, until the sector was cleaned up, the Reserve Bank of  Zimbabwe later spared the public which relies on the platforms for daily transactions, after a huge outcry.

 Businesses on the other hand were limited to primarily using mobile money for receiving payments.

 The ZSE said trading would remain suspended as consultations are on-going with stakeholders.

 “Whilst we await guidance from our regulators on the operational modalities going forward, we notify our stakeholders that trading has been suspended until further notice,” said ZSE chief executive, Justin Bgoni.

 Government accused the ZSE of harbouring “fake counters” that were also using the Old Mutual Implied Exchange Rate in the conduct of their business promoting the existence of many exchange rates in the economy.

 The ZSE, whose operations are overseen by the Securities Exchange  Commission of Zimbabwe, is yet to respond to the allegations. – New Ziana