- The Arab Monetary Fund, which is a regional organisation of countries in the Middle East, revealed that it had made a successful transfer between two leading banks in the region using its system known as Buna.
- The banks in question are based in Egypt and the United Arab Emirates, and the transaction was made using the dirham, which is the currency of the latter.
- A spokesperson for the Arab Monetary Fund said that the Buna system was now working at “full capacity” and was assisting customers during the pandemic period.
A finance-focused regional organisation in the Middle East has announced a significant milestone in its plans to improve the cross-border payments framework in the region.
The Arab Monetary Fund, which is a funding organisation working in the Middle East, said that its own payment platform had been responsible for the very first international payment to be made between two key banks.
One of these banks is Banque Misr, which is Egyptian, and the other is Mashreq Bank, which is located in the United Arab Emirates.
The transaction was made in UAE dirham (AED).
The platform in question, called Buna, is part of the Regional Entity for Clearing and Settlement of Intra-Arab Payments – which in turn is owned by the Arab Monetary Fund.
In a statement, a spokesperson for the Arab Monetary Fund was positive, but explained that there were certain requirements in place before currencies could be used by the Buna programme.
Abdul Rahman bin Abdullah Al Hamidi, who serves as both the chair and the director general of the Arab Monetary Fund, pointed out that the requirements kicked in whether the payment was local or international.
“We are proud and happy to announce that the Buna payment platform system is now operating at full capacity, and is able to provide clearing and settlement services for cross-border payments in international and Arab currencies that meet eligibility requirements,” he said.
He went on to say that the development was part of a set of strategic goals – and that this was still adhered to despite the problems posed by the coronavirus pandemic.
“In real time, the success of the first payment process is strong evidence of our commitment to follow our plan despite the difficult circumstances and unprecedented challenges at the global level,” he said.
In his concluding remarks, he said that there was a set of global standards to stick to when it comes to developing a set of principles like these.
“It also constitutes additional confirmation of the platform’s ability to carry out its operational activity within the specified requirements, and in accordance with international standards and principles,” he explained.
The Arab Monetary Fund dates back to 1976.
It is a designated Regional Arab Organisation, and it has a large number of nations on its books, including Bahrain, Qatar and Yemen.
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