The first phase includes the Republic of Iraq, the Hashemite Kingdom of Jordan, and the Arab Republic of Egypt
The service aims to support financial inclusion and enhance the user experience by utilizing Buna platform to improve the efficiency of pension payments
The Central Bank of Iraq, the Central Bank of Jordan, the Central Bank of Egypt, and Buna, the cross-border payment system operated by Arab Regional Payments Clearing and Settlement Organization “ARPCSO”, owned by the Arab Monetary Fund, announced a joint Arab initiative to launch cross-border payment service for pensioners in the Arab world utilizing the Buna system.
The initial phase includes the Republic of Iraq, the Hashemite Kingdom of Jordan, and the Arab Republic of Egypt, where the new service will enable Iraqi pensioners residing in Jordan and Egypt to receive their monthly salaries faster and more efficiently. Iraqi pensioners who wish to benefit from this service can open accounts in any of the banks that participated in the initiative and completed the onboarding in Buna. The pension payments will take place at the end of each month in collaboration with the banks that are actively operating in the markets of Iraq, Jordan, and Egypt and have completed the activation of the Jordanian dinar and the Egyptian pound on the Buna system. Pensioners may follow the news issued by the various banks to obtain more detailed information about this service.
With more banks joining Buna and completing the activation of the Jordanian dinar and the Egyptian pound, the initiative will be further expanded in the future into other countries in coordination with Arab Central Banks to enhance the experience for pensioners across the Arab region, and unlock new opportunities for improving the efficiency of cross-border payments used in various use cases such as scholarship payments and student allowances, patient healthcare payments, embassies payments and other government use cases, realizing the objectives of Buna to strengthen the Arab economic ties and boost the intra-Arab payments and the usage of Arab currencies.
Commenting on this initiative, H.E Mustafa Ghaleb Mukheef, Governor of the Central Bank of Iraq stated, "We are always keen to provide the best financial services to our citizens and are therefore happy to launch this initiative to offer distinguished financial services and solutions to Iraqi pensioners residing in Jordan and Egypt, giving them the possibility to receive their monthly pensions directly through their bank accounts in a fast manner, transparently, and with cost efficiency. This initiative also comes as part of our continuous efforts to employ fintech technology and provide the banking sector with the best modern and safe solutions in the areas of payments and financial inclusion.” H.E added, “On this occasion, we would like to thank their Excellencies, the Governors of the Central Bank of Jordan, the Central Bank of Egypt and the Chairman of the Board of Directors of Buna and all participating banks from Iraq and the Arab world for their support to this initiative, which would pave the way for activating more intra-Arab payment services in general and governmental payments in particular, which in turn reinforces the Arab economic cooperation.”
H.E Dr. Adel Al-Sharkas, Governor of the Central Bank of Jordan, commented, "Our support for this initiative is part of the Central Bank of Jordan’s continuous efforts to encourage the use of Buna system for intra-Arab payments. This also comes as a continuation of our support for the joint Arab initiatives aimed at enhancing economic and social integration in the Arab region and being part of the pivotal role played by the Central Bank of Jordan in providing safe and efficient payment systems to achieve the digital transformation of payments locally and regionally.”
Commenting on this initiative, H.E. Mr. Hassan Abdalla Governor of the Central Bank of Egypt said, “Strengthening the economic cooperation with Arab countries is a priority for the Central Bank of Egypt, this new initiative represents a pioneering step in that direction by providing Arab modern payment solutions that comply with international standards and principles, and with the quality and efficiency of financial services in the Arab region”.
On this occasion, H.E Dr. Abdulrahman Bin Abdullah Al Hamidy, Chairman of the Board of The Arab Regional Payments Clearing and Settlement Organization (ARPCSO), spoke, “Financial inclusion is one of the strategic goals of Buna, and we are pleased to contribute in enhancing the experience of a large segment of Arab citizens, strengthening the Arab economic ties, and providing more efficient experiences for cross-border payments, thus enabling the Arab banking sector to better serve their customers in various areas of governmental, commercial and personal payments, in compliance with the highest international standards. H.E added, "On this occasion, we also thank their Excellencies the Governors of the Central Bank of Iraq, the Central Bank of Jordan, and the Central Bank of Egypt for their confidence in Buna to implement this important initiative, and for their continuous support and sponsorship of the system, and for the efforts of their colleagues in supporting the progress of its work.”