Companies / Financial Services Absa and Standard banks among many accused of price fixing The Competition Tribunal wants to ‘prosecute and fine’ as many as 15 banks, local and foreign-owned, for price fixing the rand BL PREMIUM

Standard Bank‚ Absa Bank and many foreign-owned banks have been referred to the Competition Tribunal for price fixing. This move by the Competition Commission allows the banks to be fined up to 10% of their annual turnover. The commission said in a press release that it has been investigating allegations that, from 2007, currency traders who were buying and selling US dollars in exchange for rand had fixed the price. They did this by allegedly making fictitious sales to drive up demand and change prices‚ or agreeing not to trade for a period of time. The commission said the traders also assisted each other in reaching the desired prices by co-ordinating trading times — and that it wants the banks prosecuted and fined.