Sunday, 31 March 2024 04:53

CBN removes limits on transactions in intra-Africa payment and settlement system

Rate this item
(0 votes)

Central Bank of Nigeria (CBN) has removed the limits and restrictions on transactions on the Pan-African Payment and Settlement System (PAPSS).

This is contained in a circular dated March 12, signed by Hassan Mahmud, CBN’s director of trade and exchange department.

PAPSS is a cross-border financial market infrastructure enabling payment transactions across Africa, bridging trade challenges in a continent with over 41 known currencies. 

In June 2023, PAPSS signed a memorandum of understanding (MOU) with five African multinational commercial banking groups such as UBA and Access Bank for seamless cross-border trade payments.

One month later, the apex bank pegged the amount for transactions in PAPSS at $200,000 per quarter by authorised dealer bank (ADB) and $20,000 per quarter for a customer.

However, in the latest circular, the CBN said all limits and restrictions on PAPSS, including the amount to be paid quarterly, have been removed.

“Following the recent liberalization of the Nigerian Foreign Exchange Market and the Central Bank of Nigeria (CBN) initiatives to boost foreign exchange inflows, particularly through the facilitation of intra-Africa continental trade, we hereby revise our Circular Ref-TED/FEM/PUB/FPC/01/005 issued on July 25, 2023, on the above subject,” the circular reads.

“Removal of all restrictions and limits on Pan African Payment and Settlement System (PAPSS), including US$20,000 and US$200,000 quarterly limits per Individual and authorised dealer banks (ADBs), respectively.

“Removal of the restrictions of ‘only’ Trade backed and inwards transactions

“ADBs are allowed to source for FX for settlement of PAPSS transactions through the Nigerian Foreign Exchange Market with no recourse to the CBN.

“All export proceeds repatriated under PAPSS shall be subject to certification by the respective processing banks.”

The apex bank also said all documentation requirements stipulated in the foreign exchange manual and extant circulars will continue to apply.

 

The Cable

December 12, 2024

This framework can successfully help you integrate AI into your business operations

Majeed Javdani Key Takeaways ISO 42001 provides a structured framework for AI management systems, ensuring…
December 11, 2024

APC used protests to seize power, now suppresses demonstrations - Ex-Chair NHRC

Chidi Odinkalu, former chairman of Nigeria’s National Human Rights Commission (NHRC), has criticized the ruling…
December 08, 2024

5 quick, simple ways to calm your mind—including 1 that ‘puts a brake on the stress response,’ doctor says

Renee Onque Meditating is a proven way to reduce stress, improve sleep and keep you…
November 30, 2024

Family spends $4,500 on lavish funeral for ‘faithful’ SUV

An Indian family recently went viral for their decision to send their old Suzuki Wagon…
December 12, 2024

Luigi Mangione was charged with shooting to death top US company CEO - then donations…

In the days since Luigi Mangione was charged with murder for gunning down a top…
December 13, 2024

Here’s the latest as Israel-Hamas war enters Day 434

UN General Assembly overwhelmingly demands immediate Gaza ceasefire The United Nations General Assembly overwhelmingly voted…
December 10, 2024

OpenAI launches Sora, its text-to-video AI model

OpenAI has expanded its artificial intelligence capabilities by releasing Sora, its text-to-video generative AI model,…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.