Kenya, Uganda and Tanzania launch integrated payments system
The East African Community (EAC) is closer than ever to launching an integrated cross-border payments system remove extra space , said the Central Bank of Kenya (CBK) on Wednesday (December 11th).The East African Community (EAC) is closer than ever to launching an integrated cross-border payments system
remove extra space
, said the Central Bank of Kenya (CBK) on Wednesday (December 11th).
This statement comes as Kenya, Uganda and Tanzania have just launched the East African Payments System (EAPS), which according to the CBK is a step towards the formation of a regional monetary union.
"Currently EAPS integrates with the respective real time gross settlement systems of Kenya, Uganda and Tanzania that utilise
internationally recognized SWIFT messaging network for safe and secure delivery of payment and settlement messages," said the institution in a statement published by Sabahi newspaper.
The institution added that the multi-currency system will remove obstacles to cross-border business transactions and boost regional trade.
This platform will allow an efficient transfer of monetary values within the region and will reduce significantly the usual commercial bank charges on international trade transactions.
The central banks of the member countries will supervise the system, which will involve the commercial banks. Rwanda and Burundi are still working on their system and should be ready to join in 2014.