SADC EXPECTS TO ADD US DOLLAR TO ITS ELECTRONIC SETTLEMENT SYSTEM

HARARE, The Southern African Development Community (SADC) expects to add the US Dollar as an additional currency of settlement on the SADC Integrated Regional Electronic Settlement System (SIRESS) by October this year to further ease intra-regional trade.

At the moment, the South African Rand is the settlement currency for the SIRESS, an electronic payment system that the 15 member nations of the sub-regional grouping developed to settle cross-border transactions faster without having to rely on intermediary banks from outside the region.

SADC Executive Secretary Dr Stergomena Lawrence Tax said in a statement received here Wednesday that progress was being made to eventually transform the SIRESS into a multi-currency settlement system.

"Settlement in US Dollars on the current platform is expected to go life in October 2018, while the whole multi-currency platform is expected to be fully operational by December 2019," she said in an update.

Noting that the facilitation of payments remains a key challenge to intra-SADC trade, the addition of the US Dollar that accounts for about 60 per cent of intra-SADC cross-border transactions is expected to facilitate greater cross-border trade and investment in the sub-region.

Tax said progress had also been made in making SIRESS a more inclusive payment platform, which also deals with low value cross border payments in the region.

"This milestone is important in consolidating progress and catalyzing developments in some of the milestones already attained by the SADC, in particular, the SADC Free Trade Area," she said.

The platform, established in 2013, allows for SIRESS participating banks to facilitate and settle regional transactions within SADC countries on a gross basis and in real-time. The system is operated by the South African Reserve Bank (SARB) on behalf of the SADC Committee of Central Bank Governors, with SARB also

acting as the settlement bank.

Currently there are ten participating countries -- South Africa, Lesotho, Swaziland, Namibia, Malawi, Mauritius, Tanzania, Zambia, Zimbabwe and Seychelles -- with a total of 72 participating banks, made up of seven central banks and 65 commercial banks.

Source: NAM NEWS NETWORK

SADC EXPECTS TO ADD US DOLLAR TO ITS ELECTRONIC SETTLEMENT SYSTEM

HARARE, The Southern African Development Community (SADC) expects to add the US Dollar as an additional currency of settlement on the SADC Integrated Regional Electronic Settlement System (SIRESS) by October this year to further ease intra-regional trade.

At the moment, the South African Rand is the settlement currency for the SIRESS, an electronic payment system that the 15 member nations of the sub-regional grouping developed to settle cross-border transactions faster without having to rely on intermediary banks from outside the region.

SADC Executive Secretary Dr Stergomena Lawrence Tax said in a statement received here Wednesday that progress was being made to eventually transform the SIRESS into a multi-currency settlement system.

"Settlement in US Dollars on the current platform is expected to go life in October 2018, while the whole multi-currency platform is expected to be fully operational by December 2019," she said in an update.

Noting that the facilitation of payments remains a key challenge to intra-SADC trade, the addition of the US Dollar that accounts for about 60 per cent of intra-SADC cross-border transactions is expected to facilitate greater cross-border trade and investment in the sub-region.

Tax said progress had also been made in making SIRESS a more inclusive payment platform, which also deals with low value cross border payments in the region.

"This milestone is important in consolidating progress and catalyzing developments in some of the milestones already attained by the SADC, in particular, the SADC Free Trade Area," she said.

The platform, established in 2013, allows for SIRESS participating banks to facilitate and settle regional transactions within SADC countries on a gross basis and in real-time. The system is operated by the South African Reserve Bank (SARB) on behalf of the SADC Committee of Central Bank Governors, with SARB also

acting as the settlement bank.

Currently there are ten participating countries -- South Africa, Lesotho, Swaziland, Namibia, Malawi, Mauritius, Tanzania, Zambia, Zimbabwe and Seychelles -- with a total of 72 participating banks, made up of seven central banks and 65 commercial banks.

Source: NAM NEWS NETWORK