The central banks of Angola and Namibia last week in Windhoek (Namibia) decided to cooperate in promoting modernised and digitally-enabled payment methods between the two countries.
The governors of the central banks of the two neighbouring countries want to improve exchange control regimes that are favourable to trade and protect the stability and integrity of their respective financial systems, according to a document from the National Bank of Angola (BNA), to which ANGOP had access.
In this context, the two central banks agreed to enhance trade facilitation, using current and regional cross-border payment system arrangements, to ensure faster, digitally enabled and more cost-effective remittances of valuables.
On the occasion, Central Bank of Namibia Governor Johannes Gawaxab, stressed that the renewed cooperation between the two central banks will facilitate trade and contribute to economic recovery in both countries:
“The cooperation reflects the enduring bonds of respect and friendship between our peoples,” he stressed.
In his turn, the governor of the BNA, José de Lima Massano noted, “bilateral cooperation is the appropriate course of action to strengthen ties between neighbours that share a rich history, in order to create a prosperous future for both countries.
Within the framework of this meeting, the central banks intend to ensure the reinforcement of price and financial stability, as well as the implementation of strategies to modernise national financial systems.
To facilitate payments in support of trade between the two countries, the banks agreed to explore innovative and instant payment solutions as well as other financial services under the “Fintech Regulatory Framework” approaches.
“This decision entails leveraging participation in the SADC-RTGS (Real Time Gross Settlement) platform, with the potential integration of the two countries’ respective national currencies (kwanza and the Namibian dollar) into the SADC-RTGS, with a view to facilitating payment for the settlement of goods and services,” the document reads.
On the other hand, the parties agreed to ensure better participation in the Cleared Transactions Scheme, on an Immediate Basis, introduced, through the structures of the SADC payment systems, for faster and more accessible cross-border remittances.
With regard to exchange controls, the two central banks noted that such measures were historically punitive and detrimental to trade.
Therefore, the two central banks say they are committed to the gradual and conditional removal of capital account restrictions, while supporting the objectives set out in Annex 4 of the SADC Finance and Investment Protocol, to cooperate and coordinate on exchange controls.