The Central Bank of Egypt (CBE) will launch the foreign exchange trading with instant settlement system between banks operating in Egypt on 22 March.
The step is one aspect of implementing the strategy of the National Council for Payments, headed by President Abdel Fattah Al-Sisi, and supports the development of Egyptian banking systems.
The decision, taken during the CBE Board of Directors meeting on 7 March, comes in line with international standards and recommendations. The system allows for the execution and settlement of mutual payment orders in foreign currencies between banks working in the Egyptian market.
Ramy Aboul Naga, Deputy Governor of the CBE, said that launching the system will achieve many advantages for Egypt’s banking sector.
The most important of these is reducing the cost of payment orders in foreign currency exchanged between Egyptian banks, and reducing the time required to implement and settle this type of payment order. This comes in accordance with all international standards for payment systems.
It also supports technical integration with the modern systems in force in the Egyptian banking sector, provided by the CBE.
Amani Shams El Din, Sub Governor for the Banking Operations and Payment Systems Sector at the CBE, said that the multi-currency instant settlement system enhances the level of the CBE’s supervision.
It also supports plans for technical integration between other modern systems provided by the CBE, such as the central depository and settlement system for foreign-currency-denominated government securities, and the collateral management system.
Ehab Nasr, Assistant Subgovernor for Payment Systems and Services, added that the instant settlement system is the most important system in the national payment system.
Financial operations exceeding EGP 70trn were executed during 2020 using the system, indicating that it was developed to operate in a multi-currency format. It includes the implementation of mutual transactions between Egyptian banks in foreign currencies.