Old Mutual’s Share Price Is Focus in Zimbabwe’s Currency War
- State wants an end to use of unofficial exchange rates
- Government halted bourse, mobile money to stabilize currency
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The share price of one of Africa’s oldest insurers is taking center stage in Zimbabwe’s battle to bring order to its chaotic foreign-exchange system.
In the latest in a series of attempts to stabilize its currency, the government wants to eradicate the Old Mutual Implied Rate. The gauge, used by domestic companies to determine the future cost of goods and services, calculates a potential forward rate for the Zimbabwe dollar by measuring the difference between Old Mutual Ltd.’s share prices in Johannesburg, London and Harare.