Wednesday 04 Dec
In a continued effort to bolster regional banking relations and enhance economic cooperation with African nations, the Central Bank of Egypt has approved an agreement to join the Pan-African Payment and Settlement System (PAPSS).
Operated by the African Export-Import Bank (Afreximbank), PAPSS facilitates cross-border payments and transfers, reducing costs and processing time. This strategic move signifies a significant step towards strengthening historical economic ties and expanding trade between Egypt and its fellow African nations.
Ramy Abul Naga, Deputy Governor
of the Central Bank of Egypt, stated, "Joining this new system aligns with
Egypt's commitment to fostering commercial and economic communication with
countries worldwide, particularly African nations. It is the result of ongoing
collaboration between the Central Bank of Egypt and African central
banks."
The Deputy Governor explained
that PAPSS' numerous advantages will encourage Egyptian and African banks to
participate in the system and expand their financial transactions. The system
currently includes 14 central banks from Nigeria, Ghana, Liberia, Guinea,
Gambia, Sierra Leone, Djibouti, Zimbabwe, Zambia, Kenya, Rwanda, Malawi,
Tunisia, and Comoros, in addition to more than 50 commercial banks.
He noted that many Egyptian banks
have expressed interest in joining the PAPSS system.
Under the agreement, the Central
Bank of Egypt will oversee the participation of Egyptian banks in the system.
It is expected that the new system will contribute to increased trade between Egypt and Africa, strengthen Egypt's economic ties with African countries, and facilitate financial integration among African nations. Additionally, it will help alleviate pressure on foreign exchange by providing a mechanism for settling net transactions between participating countries.
