Economy
Ethiopia Joins Pan-African Payment System to Boost Regional Trade
2Merkato.com · 3 hours ago · Read the Full Story on 2Merkato.com
AI SUMMARY
The National Bank of Ethiopia has officially joined the Pan-African Payment and Settlement System to facilitate cross-border transactions and reduce dependence on the US dollar.
- The National Bank of Ethiopia officially joined the Pan-African Payment and Settlement System (PAPSS).
- PAPSS enables businesses and financial institutions to conduct transactions directly in local currencies, reducing dependence on the US dollar.
- The system eliminates the need for intermediary correspondent banks traditionally used for international payments.
- National Bank of Ethiopia Governor Eyob Tekalign stated the move supports financial modernization and economic ties across Africa.
- PAPSS launched in January 2022 with 10 commercial banks and now operates in more than 15 African countries, including Nigeria, Kenya, Zambia, Malawi, and Tunisia.
- The network currently connects more than 150 commercial banks across the continent, while South Africa has not yet joined.
- The payment system supports the implementation of the African Continental Free Trade Area (AfCFTA) by making cross-border payments more efficient and affordable.
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