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The "Bani" platform provides settlement services in Arab and international currencies
The Arab Monetary Fund announced the start of providing clearing and settlement services for payments in US dollars in cooperation with GBMorgan Bank, which allows the settlement of inter-Arab financial transactions in US dollars as well as financial and investment transactions with the main trading partners of the Arab world that are carried out in US dollars. Arab Payments thus has the first regional payments platform in the world that provides clearing and settlement services in multiple currencies, including the US dollar and major Arab currencies.
This is an added value that the platform provides to banks operating in the Arab region that fulfill the conditions for participation in it, given the great importance of the US dollar in Arab financial transactions, where the percentage of the number of inter-Arab financial transactions that are conducted in US dollars is about 55 percent (about 3.6 million transfer transactions. Annually among Arab countries), according to available statistics, and the value of transactions in US dollars amounts to about 72 percent of the total value of inter-Arab financial transactions (about 3.9 trillion dollars annually).
Whereas the platform provides clearing services for settlement in the UAE dirhams, Egyptian pounds and Saudi riyals, the volume of inter-Arab financial transactions that the platform can settle using the currencies available to it is approximately 80 percent of the number or value of inter-Arab financial transactions. It is estimated that the inclusion of other Arab and international currencies that meet the eligibility criteria will soon be announced, in order to enhance the clearing services.
The "Bani" Arab Payments platform aims to encourage and develop intra-Arab trade and investment activities and exchanges, and to provide a modern platform that encourages the use of negotiable Arab currencies along with international currencies in clearing and settling Arab transactions and leads to a reduction in the cost of completing transfers and payments between Arab countries and reducing the time period for them.
The platform also seeks to link with the main trading partners of the Arab countries, in order to enhance the opportunities for strengthening trade and investment relations with these partners.
The platform aims to fully adhere to international standards that make it a reliable system at the local, regional and international levels.
As well as ensuring that the platform enjoys a high degree of protection to ensure the security of information and transactions, and the ease of linking, as the link does not require substantial modifications in the technical systems used. Participation in the platform is available to Arab and international financial and banking institutions that meet a number of conditions and criteria.
The platform is designed to comply with the principles of financial market infrastructure issued by the Bank for International Settlements, international standards for combating money laundering and terrorist financing operations, standards issued by the Security Council on combating terrorism, and the prevention regulations issued by the United Nations.
As well as compliance with the regulations issued by the countries whose currencies are used as settlement currencies on the platform.
Dr. Abdulrahman Al-Hamidi, Director-General and Chairman of the Board of Directors of the Arab Monetary Fund, said that by including the main Arab and international currencies, the fund has completed the launch of a built platform for Arab payments, to represent a system for financial infrastructure that serves financial integration opportunities by encouraging investments and intra-trade.
He noted the great support provided by the governors of Arab central banks for the platform's success.
Finally, he stressed the Fund's keenness to continue developing the platform's services in a manner that responds to the needs of financial and banking institutions, and in line with modern trends in payment systems, praising the existing cooperation with international financial institutions and the Group of Twenty.
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