The Pan-African Payment and Settlement System (PAPSS) has launched a new intra-African foreign exchange market. The aim is to facilitate trade between countries on the continent using only local currencies.
The initiative seeks to eliminate the need to convert foreign currency into US dollars for commercial transactions. Transactions will be able to be completed entirely in the currencies of origin and destination.
The system operates in real time, 24 hours a day, every day of the year. It is already connected to 16 central banks, more than 150 commercial banks and 14 national clearing systems.
According to its executive director, Mike Ogbalu, the system does not involve "hard currency" in operations. He also pointed out that more than $2 billion is currently blocked in various African countries, which is particularly detrimental to sectors such as airlines.
The platform has been developed in collaboration with Afreximbank, the African Union Commission and the African Free Trade Area Secretariat (AfCFTA). It is also technologically supported by Interstellar, a company that uses the African blockchain network Bantu.
The new marketplace aims to strengthen the continent's financial integration and enhance the monetary sovereignty of its states. Its launch coincides with strong growth in e-commerce in Africa.
Source: news.bitcoin.com; ainvest.com