(COMTEX)     B: Bankers Move to Introduce Sub-Regional Interbank Payment Sys
B: Bankers Move to Introduce Sub-Regional Interbank Payment System
 
Aug 12, 2002 (Vanguard/All Africa Global Media via COMTEX) -- THE move towards
economic integration in the West African sub-region is set to receive a boost,
as the West African Bankers Association (WABA) has commenced plans to introduce
a sub-regional interbank payment system.
 
Vanguard was reliably informed that the system, which would be known as West
African Inter Bank Payment System (WAIPS) is aimed at facilitating and enhancing
payment among banks in the ECOWAS subregion hence eliminating the need for inter
regional payments to be rooted through London or New York.
 
-Furthermore, it was gathered that the system is designed to promote utilisation
of local currencies of ECOWAS member countries.
 
Confirming this initiative in an exclusive interview with Vanguard, President,
West African Bankers Association Nigeria chapter, Mr. Daniel Abass explained
that the development of WAIPS becomes necessary in order to encourage banks in
the subregion to finance trade and open correspondent banking relationships
amongst themselves.
 
He noted that presently, the absence of such a sub-regional interbank payment
system discourage banks in the sub-region from financing trade within the
sub-region as well as limit correspondence relationship among West African
banks.
 
This, he explained is because banks in each ECOWAS member state, has to go
through either their European or American corresponding banks before they can
reach their partners in or other ECOWAS member state adding that this
arrangement significantly contribute to the low level of formal trade flows
within the sub-region.
 
Abass remarked that with the introduction of WAIPS, there would be increase in
formal trading activities in the sub-region, as the system would enhance trade
payment settlement through banks within the sub-region.
 
He disclosed that the introduction of the system is at the final stage of
implementation.
 
"We have set up a small committee to fine tune the operational modalities for
the system" he stated, adding that the association is currently working with
legal formalities, registration as well as harmonisation of the two major blocs,
namely the Anglophone bloc and the Francophone bloc, in the sub-region.
 
 
by Babajide Komolafe
 
 Copyright Vanguard. Distributed by All Africa Global Media(AllAfrica.com)
 
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 KEYWORD:          Nigeria
 
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