The Central Bank of Nigeria (CBN) has authorised dealer banks to independently source foreign exchange for the Pan-African Payment and Settlement System (PAPSS) via the Nigerian Foreign Exchange Market, without direct reliance on the apex bank.
In a statement issued by acting director of Corporate Communications, Hakama Sidi Ali, the CBN also introduced streamlined documentation rules for PAPSS transactions, aimed at bolstering intra-African trade and financial inclusion.
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Launched in 2022 by Afreximbank alongside the African Union and the AfCFTA Secretariat, PAPSS enables fast, secure cross-border payments in local currencies, reducing dependence on external currencies and driving continental trade.
Under the new rules, individuals transacting up to $2,000 and corporates up to $5,000 can now rely on existing Know Your Customer and Anti-Money Laundering documents held by their banks. Larger transactions, however, will continue to require full compliance with CBN’s foreign exchange regulations.
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