Zimbabwe Suspends Fungibility of Old Mutual, Two Other Stocks

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Zimbabwean Finance Minister Mthuli Ncube suspended the fungibility of three companies’ stocks to try and halt a rout of the nation’s currency.

Tavona Biza
Tavona Biza

The year-long measure affects Old Mutual Ltd., PPC Ltd. and Seed Co., Ncube said Sunday in a Government Gazette. The order doesn’t have any impact on the settlement of transactions in the stocks conducted before March 13 as long as they’re effected by March 18, he said.

Old Mutual’s stock also trades in London and South Africa, PPC in South Africa and Seed Co. in Botswana. Those dual listings and differing exchange rates can offer traders arbitrage opportunities.

Zimbabwe’s dollar has weakened about 86% since February 2019, when the government dropped a one-to-one peg of its quasi-currency to the dollar in February and later outlawed the use of foreign exchange.

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