African Migrant Remittances: BAM Official Calls for Linking Payment Systems

Geneva - The Managing Director of Morocco's Central Bank, "Bank Al-Maghrib" (BAM), Abderrahim Bouazza, called on Wednesday for linking African payment systems with the settlement platforms of migrants' host countries.'This measure is essential to reduce delays, costs, and the security of remittances," stressed Mr. Bouazza at a panel discussion organized by Morocco's Permanent Mission to the UN in Geneva as part of the World Trade Organization's (WTO) Public Forum, taking place on September 10-13.The adoption in many countries of instant payment systems based on low-cost alternatives to cash has paved the way for increased competition in the remittance market, he noted."These systems have the potential to bring many people into the financial system and to be relevant for interoperable cross-border payments and transfers," he said at the event, chaired by Morocco's Ambassador and Permanent Representative in Geneva, Omar Zniber.With this in mind, Mr. Bouazza added, African central banks, including BAM, are currently working together to integrate their payment systems into the continental Pan-African Payment and Settlement System (PAPSS). The primary goal is to support trade within the framework of the African Free Trade Area (AFTA), he said, noting that the PAPSS system enables instant settlement in local currencies by operating 24/7.According to the official, Bank Al-Maghrib implemented the instant payment system in 2023 and is currently upgrading its real-time settlement system, with the aim of meeting the conditions required for it to be interoperable with regional platforms.In this context, he noted that despite their overall improvement, migrant remittances in Africa continue to face challenges requiring greater mobilization of stakeholders, including UN institutions, governments, and central banks.He also emphasized the need to optimize the financial flows of migrants so that the potential of their use can have a greater impact on the development of the continent's countries. "Surveys have shown that migrants are inclined to increase their remittances when economic conditions in their country of origin are favorable," Mr. Bouazza argued.The event, which coincides with the 30th anniversary of the Marrakech Accords establishing the WTO, was selected from a record 300 applications received for the 2024 Public Forum, one of the WTO's biggest awareness-raising events.Source: Agence Marocaine De Presse