CBE joins PAPSS to boost African trade
Updated 12/3/2024 1:25:00 PM
Arab Finance: The Central Bank of Egypt (CBE) has officially joined the Pan-African Payment and Settlement System (PAPSS), a move aimed at enhancing intra-African trade and reducing dependence on foreign currencies, as per a statement.
The decision aligns with Egypt's strategy to foster stronger economic ties within Africa and streamline regional banking relations.
PAPSS, developed by the African Export-Import Bank (Afreximbank), facilitates cross-border payments by lowering transaction costs and shortening processing times.
This system is expected to play a pivotal role in boosting Egypt’s bilateral trade with African nations and strengthening long-standing economic partnerships across the continent.
The initiative brings several advantages, including encouraging financial institutions in Egypt and across Africa to engage in cross-border transactions.
PAPSS currently includes 14 central banks from countries including Nigeria, Kenya, Ghana, and Tunisia, alongside over 50 commercial banks.
Several banks in Egypt have expressed interest in joining, with the CBE set to oversee their participation.
By enabling a net settlement mechanism among member countries, PAPSS is expected to ease demand for foreign currencies and foster financial integration.
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