JOHANNESBURG, Nov. 15 (Xinhua) -- The Competition Commission of South Africa said Wednesday that it has reached a settlement agreement with the Standard Chartered Bank (SCB), a U.K.-based multinational bank, in which the SCB acknowledges and admits to a currency manipulation case and agrees to pay an administrative penalty of over 42.7 million rand (about 2.35 million U.S. dollars).
The settlement brings to an end an eight-year-long dispute over allegations that the SCB colluded with other banks to manipulate the rand-U.S. dollar exchange rate.
The Commission said in a statement that their investigations revealed that between 2007 and 2013, the SCB and others colluded to fix prices of the South African currency pairs using various communication channels, including instant messaging platforms.
"The SCB participated in the manipulation of the USD/ZAR currency pair by fixing bids, offers, bid-offer spreads, the spot exchange rate and the exchange rate at the fix. Further, the SCB participated in dividing markets by allocating customers in terms of which one trader withholds or pulls his/her existing bid or offer from the market to allow the other trader to execute and complete his/her trade," the statement said.
The SCB is one of the 28 banks that are being prosecuted by the South African Competition Commission for manipulating the rand-U.S. dollar currency pair, according to the statement.
"The commission welcomes SCB's decision to reach a settlement on this matter and encourages other respondent banks to consider settling the complaint against them. Further, this settlement affirms the commission's pursuit of allegations related to the manipulation of the USD/ZAR currency pair, given the ultimate impact of the currency manipulation on the value of the South African rand," said Competition Commissioner Doris Tshepe. ■