UAE and AMF introduce clearing and payment settlement services in AED
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UAE and AMF introduce clearing and payment settlement services in AED 06 August 2020Abu Dhabi Reporter: Maddie Saghir
Image: Oleg Zhukov/ Adobe Stock
The Central Bank of the United Arab Emirates (UAE) and the Arab Monetary Fund (AMF) have signed an agreement to offer clearing and payment settlement services in Emirati Dirhams, AED.
This will be carried out through the Buna platform for Arab payments, after the completion of technical link operations.
The announcement concludes the efforts of teams from the bank and platform to link their systems, as well as perform tests and conduct procedures aimed at making the AED the platform’s first settlement currency.
Through the platform, participating banks in Arab countries will be able to clear and settle cross-border payments in AED and reduce costs.
It was explained that AED accounts for a large percentage of Arab payments, with transactions accounting for over 13 percent of Arab financial transactions, barring individual transfers via foreign currency exchange companies.
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Image: Oleg Zhukov/ Adobe Stock 