The Director General of Bank Al-Maghrib, Abderrahim Bouazza, called on Wednesday for the interconnection of African payment systems with the settlement platforms of migrant host countries, so that they are oriented towards productive investment.
“This interconnection is essential to reduce the time, costs and security of transfers,” Mr. Bouazza stressed during a panel initiated by the Permanent Mission of Morocco to the UN in Geneva, as part of the World Trade Organization (WTO) Public Forum, which is being held from September 10 to 13 at the Organization’s headquarters. He noted that the adoption in many countries of instant payment systems, based on alternatives to cash and at low costs, has paved the way for increased competition in the transfer market.
“These systems have the potential to bring many people into the financial system and be relevant for interoperable cross-border payments and transfers,” he said during this event chaired by the Ambassador and Permanent Representative of the Kingdom in Geneva, Omar Zniber. It is in this perspective, he said, that African Central Banks, including BAM, are joining forces to integrate their payment systems into the continental PAPSS system “Pan African Payment and Settlement System”. The primary ambition is to support trade within the framework of the African Free Trade Area (AfCFTA), he said, noting that the PAPSS system allows instant settlement in local currencies by operating 24/7.
According to Mr. Bouazza, Bank Al-Maghrib set up the instant payment system in 2023 and is in the process of upgrading its real-time settlement system, with the aim of meeting the conditions required for it to be interoperable with regional platforms. In this context, he noted that despite their overall improvement, migrant transfers in Africa continue to face challenges requiring greater mobilization of stakeholders, including UN institutions, governments and central banks.
He also emphasized the optimization of migrants’ financial flows so that the potential of their use can have a greater impact on the development of the countries of the continent. “Surveys have shown that migrants would be inclined to increase their transfers when the economic conditions in their country of origin are favorable,” he said. The discussions during this panel, placed under the theme: “Migrant remittances, inclusive trade and development”, focused in particular on the factors behind the high cost of remittances, the digital divide, the non-digitalization of payments, low levels of inclusion, the lack of transparency and regulation of the sector and the margins applied to currency conversions.
Also taking part in the discussions were WTO Deputy Director-General Xiangchen Zhang, Assistant Director-General for External and Institutional Relations at the International Labour Organization (ILO), Laura Thompson, Deputy Director-General of the International Organization for Migration, Ugochi Daniels, World Bank Special Representative to the UN and WTO in Geneva, Maria Dimitriadou, and Ambassador and Permanent Representative of Togo to the UN, Yackoley Kokou Johnson. The event, which coincides with the 30th anniversary of the Marrakesh Agreements establishing the WTO, was selected from a record number of more than 300 applications received for the 2024 Public Forum, one of the organization’s largest outreach events.
LNT with Map
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– 2024-09-12 19:56:03
