Suspended from exchange market

The Bank of Mozambique on Wednesday suspended one of the country’s largest commercial banks, Standard Bank, from all activities on the Interbank Exchange Market. The brief statement from the central bank gave no reason for the suspension but, according to Thursday’s issue of the independent newssheet “Carta de Moçambique”, it follows an inspection which gave rise to suspicions that Standard Bank had committed violations of banking rules, presumably concerning the exchange rates it was practising.

“Carta de Moçambique” accuses the governor of the central bank, Rogério Zandamela, of acting precipitately, since the inspection of Standard Bank is not yet complete. Nor has Standard Bank been given an opportunity to defend itself. It is not clear what impact the suspension will have, but it could be serious, since Standard Bank controls some 45 per cent of the exchange market, and holds the greater part of the deposits in foreign currency. The paper says the atmosphere at Standard Bank is calm, and that the bank is declining any responsibility for any damaging effects that the suspension may cause on the market.