The Managing Director of Morocco’s Central Bank, Bank Al-Maghrib (BAM), Abderrahim Bouazza, has emphasized the importance of connecting African payment systems with those of the host countries for migrants. He articulated that this integration is critical for minimizing delays, reducing costs, and enhancing the security of remittances during a panel discussion at the World Trade Organization’s Public Forum in Geneva.
Key points from the discussion include:
– The rise of instant payment systems in various countries has led to increased competition within the remittance market, offering low-cost alternatives to cash.
– These payment systems can draw many people into the financial system and facilitate interoperable cross-border payments and transfers.
– African central banks, including BAM, are collaborating to integrate their payment systems into the Pan-African Payment and Settlement System (PAPSS), aimed at supporting trade under the African Free Trade Area (AFTA). PAPSS allows for real-time settlement in local currencies around the clock.
– Bank Al-Maghrib introduced its instant payment system in 2023 and is currently enhancing its real-time settlement capabilities to ensure interoperability with regional platforms.
– Despite improvements, challenges remain concerning migrant remittances in Africa, necessitating greater involvement from UN institutions, governments, and central banks to optimize financial flows.
– Bouazza indicated that surveys suggest migrants tend to increase their remittances when economic conditions are favorable in their home countries.
This forum aligns with the 30th anniversary of the Marrakech Accords that established the WTO and stands out among numerous submissions for its relevance and significance.
