Arab Financial Institutions Aim for Regional Payments System

ALGIERS, Oct 7 (KUNA) – Financial institutions from across the Arab region met in Algiers, Algeria, to discuss the progress of plans for a regional payments and settlements system. The gathering involved an ad hoc committee tasked with fostering cooperation between Arab central banks and financial institutions.

The initiative aims to strengthen the region’s financial infrastructure, making cross-border payments more efficient, secure, and less reliant on external systems. This would also help to combat “financial scams and fraud,” according to a joint statement by Algeria’s central bank and the Arab Monetary Fund.

A Shift Towards Regional Integration:

Arab Monetary Fund chief Fahad Al-Turki highlighted the need for a regional cross-border payments and settlements system to replace the current arrangement, which relies heavily on foreign systems. The new system would utilize cutting-edge technology, including artificial intelligence, to enhance its functionality and security.

Positive Developments and Collaborative Efforts:

The meeting saw officials from central banks and financial institutions across the Arab world come together to discuss the initiative’s progress. Both Algeria’s central bank and the Arab Monetary Fund emphasized the “continued progress” made towards a more robust and interconnected financial system in the region. The meeting also recognized the crucial role the Arab Monetary Fund has played in providing the necessary infrastructure for a stronger financial network.

Key Takeaways:

• Arab financial institutions are collaborating to develop a regional payments system, aiming for greater financial integration and security.
• The new system is expected to be more efficient and less reliant on foreign systems, potentially reducing dependence on external players.
• The initiative is being driven by a need to combat financial scams and fraud within the region.

This development signifies a growing push towards regional financial integration within the Arab world. By creating a more robust and secure payment system, Arab economies could see increased trade, investment, and overall economic growth.