The Central Financial institution of Nigeria (CBN) has eliminated the bounds and restrictions on transactions on the Pan-African Cost and Settlement System (PAPSS).
That is contained in a round dated March 12, signed by Hassan Mahmud, CBN’s director of commerce and alternate division.
PAPSS is a cross-border monetary market infrastructure enabling fee transactions throughout Africa, bridging commerce challenges in a continent with over 41 identified currencies.
In June 2023, PAPSS signed a memorandum of understanding (MOU) with 5 African multinational industrial banking teams corresponding to UBA and Entry Financial institution for seamless cross-border commerce funds.
Commercial
One month later, the apex financial institution pegged the quantity for transactions in PAPSS at $200,000 per quarter by authorised supplier financial institution (ADB) and $20,000 per quarter for a buyer.
Nonetheless, within the newest round, the CBN mentioned all limits and restrictions on PAPSS, together with the quantity to be paid quarterly, have been eliminated.
“Following the current liberalization of the Nigerian Overseas Trade Market and the Central Financial institution of Nigeria (CBN) initiatives to spice up overseas alternate inflows, notably by means of the facilitation of intra-Africa continental commerce, we hereby revise our Round Ref-TED/FEM/PUB/FPC/01/005 issued on July 25, 2023, on the above topic,” the round reads.
Commercial
“Elimination of all restrictions and limits on Pan African Cost and Settlement System (PAPSS), together with US$20,000 and US$200,000 quarterly limits per Particular person and authorised supplier banks (ADBs), respectively.
“Elimination of the restrictions of ‘solely’ Commerce backed and inwards transactions
“ADBs are allowed to supply for FX for settlement of PAPSS transactions by means of the Nigerian Overseas Trade Market with no recourse to the CBN.
“All export proceeds repatriated below PAPSS shall be topic to certification by the respective processing banks.”
Commercial
The apex financial institution additionally mentioned all documentation necessities stipulated within the overseas alternate handbook and extant circulars will proceed to use.
