Arab Finance: Within the framework of Egypt’s ongoing efforts to support banking relations at the regional level and enhance economic cooperation with African countries, the Central Bank of Egypt approved in November 2024 the agreement for the bank’s participation in the African Payment and Settlement System (PAPSS).
The PAPSS system – affiliated with the African Export-Import Bank (Afreximbank) – contributes to facilitating the implementation of cross-border payments and trade transfers while reducing the cost and time required to implement them, which represents a promising new step towards strengthening historical economic ties and expanding the mutual trade movement between Egypt and sister African countries.
Rami Abu El-Naga, Deputy Governor of the Central Bank of Egypt, stated, “The signing of the agreement for the Central Bank of Egypt’s participation in the new system comes within the framework of the Arab Republic of Egypt’s keenness to achieve the required commercial and economic communication with various countries of the world, especially African countries, and as a result of continuous communication and cooperation between the Central Bank.” Egyptian and African central banks.
The Deputy Governor explained that “the many advantages offered by the African payment and settlement system would motivate banks operating in Egypt and African banks to participate in the system and expand financial transactions between them, as the system includes in its membership (14) central banks of the countries (Nigeria – Ghana – Liberia – Republic of Guinea – Gambia – Sierra Leone – Djibouti – Zimbabwe – Zambia – Kenya – Rwanda – Malawi – Tunisia – Comoros) in addition to more than 50 commercial banks, and many banks operating in Egypt have expressed their interest and desire to participate in the PAPSS system, and according to the agreement, the Central Bank of Egypt will supervise the participation of banks operating in Egypt in the system.”
It is expected that the new system will contribute to enhancing the volume of trade exchange between the Arab Republic of Egypt and the continent of Africa and consolidating Egyptian economic relations with African countries. It will also help achieve financial integration between the countries of the African continent, in addition to alleviating pressure on the provision of foreign currencies through the net transaction settlement mechanism. exchanged between participating countries.
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