PAPSS: A Crucial Step towards Strengthening Economic Ties with Africa
Egypt’s Central Bank Joins Forces to Boost Cross-Border Payments and Intra-African Trade
In a significant move to enhance economic collaboration with African nations, the Central Bank of Egypt (CBE) has officially joined the Pan-African Payment and Settlement System (PAPSS). This milestone marks a major step forward in promoting cross-border payments and trade transactions, ultimately fostering stronger economic bonds between Egypt and its African counterparts.
A Commitment to Economic Partnerships
Rami Aboulnaga, Deputy Governor of the CBE, emphasized that the agreement reflects Egypt’s commitment to expanding commercial and economic partnerships, particularly with African nations. “This milestone is the result of ongoing collaboration between the CBE and other African central banks,” Aboulnaga stated.
Streamlining Cross-Border Payments with PAPSS
Developed by the African Export-Import Bank (Afreximbank), PAPSS streamlines cross-border payments and trade transactions, reducing costs and processing times. The system offers a range of advantages, encouraging banks in Egypt and across Africa to participate and facilitating seamless cross-border financial transactions. Currently, PAPSS includes 14 central banks from countries such as Nigeria, Ghana, Kenya, and Tunisia, alongside over 50 commercial banks.
Egyptian Banks to Join PAPSS
Several Egyptian banks have expressed strong interest in joining PAPSS. The CBE will oversee their integration into the system. As a result, this initiative is expected to alleviate pressure on the demand for foreign currencies. Consequently, it will support a more efficient and sustainable regional trade framework. Furthermore, this move will streamline cross-border payments between Egypt and other African nations. Ultimately, the new system will foster stronger economic ties and promote financial integration across the continent.
Boosting Intra-African Trade and Regional Financial Integration
By joining PAPSS, Egypt aims to significantly boost intra-African trade. This move will enhance economic ties with its African partners and promote regional financial integration. Additionally, the system’s net settlement mechanism will reduce the demand for foreign currencies. Consequently, it supports a more efficient and sustainable regional trade framework for cross-border payments.
A Brighter Future for Intra-African Trade
In conclusion, the CBE’s decision to join PAPSS marks a significant step towards enhancing economic ties with African nations. By streamlining cross-border payments and trade transactions, PAPSS is set to play a crucial role in promoting intra-African trade, regional financial integration, and economic partnerships across the continent. As Egypt continues to strengthen its economic bonds with Africa, a brighter future for intra-African trade is on the horizon.
Source: dailynewsegypt.com