As a Settlement Bank for Saudi’s Currency the National Commercial Bank assigned as per the settlement bank.
Saudi Arabia’s Riyal has become, the third Arab Currency for joining the platform, as it has been included as the settlement currency within the Arab Monetary Fund (AMF’s) native cross border payment system.
On Thursday, as according to a cumulative statement issued from sources from AMF as well as Saudi Arabian Monetary Authority (SAMA) stated that: “The kingdom’s biggest lender National Commercial Bank (NCB) has been allotted as settlement bank for Saudi Currency. The Saudi riyal’s inclusion in Buna, as the AMF payments payment and settlement system are recognized, following the reception of the UAE dirham and Egyptian pound.”
In February, the AMF set rolling out Buna, a multi-currency platform that’s main objectives to empower financial institutions, including commercial and central banks, to send and collect cross-border payments. The payments are across the Arab region and beyond, in Arab currencies and vital universal currencies.
The Saudi riyal is one of the greatest utilized currencies in cross-border payment dealings in the section, according to the statement.
Abdulrahman Al Hamidy, Director general and chairman of the AMF board, stated that: “They are on the right track to realise their strategic objective of accumulation of core currencies to our platform in a dependable and sustainable pattern as well as accumulation of the Saudi riyal to Buna’s list of payment currencies, denotes additional solid proof of the supplementary value that our multi-currency platform can bring not only at native level, but to the universal payment industry.”
“The attachment of this foremost local currency in Buna native payment platform is core in realising Buna’s vision to authorize Arab economies and encourage regional integration, by inspiring the usage of Arab currencies in cross-border payments and investments,” the fund and Saudi Arabia’s banking regulator said in a statement.
The latest Buna system will encourage trade and investment between Arab nations. It will also help in the expansion of financial and banking services and products across the section, according to AMF.
Abu Dhabi-based AMF was founded in 1976 to support its member nations implement numerous economic and financial reforms and boost advance. Member nations include Jordan, the UAE, Bahrain, Saudi Arabia, Syria, Somalia, Iraq, Oman, Palestine, Kuwait, Lebanon, Libya and Egypt.
The fund core objectives to have a varied and alert payment system, that offers contemporary payment solutions that comply with global standards in a safe, cost- effective, risk-controlled and transparent environment, Mr Al Hamidy said.