Manipulation of the rand, the banks, and the test of our sovereignty

WHAT happens when powerful foreign banks can influence the value of our rand, raise the cost of living for millions, and then claim that our laws do not apply to them?

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That, in essence, is the question now before the Constitutional Court, and its answer will define how South Africa defends its sovereignty in a globalised financial system.

In August, the Court heard the Competition Commission’s appeal against the Competition Appeal Court’s decision to dismiss charges of rand manipulation against 13 international banks. The judgment, now reserved, will decide whether foreign financial institutions can be held accountable when their conduct directly affects South Africa’s markets.

If South Africa cannot hold global banks accountable for manipulating its currency, then our economic sovereignty exists only on paper.

This saga dates back to 2015, when the Competition Commission investigated allegations that 28 local and international banks colluded to manipulate the rand/dollar exchange rate between 2007 and 2013. Traders allegedly conspired through private chatrooms, sharing confidential data and coordinating trades to distort market prices for profit.

Such behaviour is not harmless. When the rand weakens artificially, the effects ripple through every South African household: fuel prices rise, food costs climb, imports become more expensive, and the value of savings erodes. Currency manipulation is not an abstract market issue; it is a direct assault on the country’s economic well-being.