Central Bank of the UAE collaborates with SWIFT for cross-border payments

The Central Bank of the United Arab Emirates has announced that it has been working with SWIFT on initiation to enhance the speed and transparency of cross-border payments. The press note of the central bank highlights that ‘‘CBUAE will be the first central bank globally to implement such an initiative’’.

Earlier this year, the Hong-Kong Monetary Authority (HKMA) with the Bank of Thailand, Central Bank of the United Arab Emirates (CBUAE) and the Digital Currency Institute of the People’s Bank of China (PBC DCI) announced the joining of CBUAE for digital currency cross-border payments.

The integration between CBUAE’s domestic UAE Funds Transfer System (UAEFTS) and SWIFT’s gpi Tracker will allow FIs to sending cross-border payments to UAE to benefit from increased transparency, certainty, and seamless transmission between the SWIFT network and the UAEFTS, by relying on Tracker offered by SWIFT, the press note said.

When the cross-border payment enters and is credited to the final account, UAEFTS will update the SWIFT’s Tracker tool on behalf of its participants. The improvements in the UAEFTS include the ability to track payments in real-time until they are credited to the final beneficiary account.