Banks demonstrate Black Friday-esque behaviour

In two days, SA will be abuzz with Black Friday specials, discounts and other deals.

According to data analytics firm GfK, some of the best-selling items last year were electronics and clothes, while home appliances such as kettles were as popular as the Proteas right now, after the Cricket World Cup.

ALSO READ: Black Friday: Here’s what retailers are doing to get a slice of the billions

Tomorrow the South African Reserve Bank will announce their interest rate decision, which will not only affect consumer spending on Black Friday, but overall consumer confidence.

Depending on how the pendulum swings, brands are ready to drop prices. Black Friday-esque behaviour has been demonstrated by some of the biggest banks.

Thanks to British finance house Standard Chartered, the Competition Commission has learnt that the rand has been manipulated on Black Friday proportions since 2007.

Implicated banks include Barclays Africa (we know them as Absa), BNP Paribas South Africa, Citigroup, Investec and Standard New York Securities, among others.

Manipulations

They are reported to have pocketed about R1 trillion a day since then, by ensuring that the rand would tank, meaning they could make more money from trading in dollars and other stronger currencies.

Domestically, a weaker rand means disaster as this leads to high inflation rates, which increases the cost of goods and decreases the purchasing power of citizens, resulting in a lower standard of living.

ALSO READ: Standard Chartered admits it manipulated the rand, agrees to R42 million fine

Only five of the 28 banks have admitted to the foreign exchange manipulation, but methinks that when Standard Chartered hands over online correspondence confirming their dubious ways, that number will be closer to 28.

South Africans have enough of a tough time already without banks making things worse. And 4 November was also commemorated as Children’s Day, with an aim to highlight progress made towards the promotion of rights of children.

Smoke and mirrors

Juxtapose that with household cleaning brand Domestos reminded us that about 3 398 South African schools still use pit latrines. Kudos to Unilever for not waiting for Black Friday to revamp ablution facilities at three schools in Umlazi, in KwaZulu-Natal.

Black Friday is smoke and mirrors – the same approach taken by the Competition Commission as the likes of Standard Chartered are being slapped with a R42 million fine, after making trillions.

Now that is grand larceny on Black Friday proportions.