The service is now operational in collaboration with Abu Dhabi Commercial Bank and Jordan Ahli Bank as the first users.
Adopting PvP as FX settlement mechanism contributes to the global effort led by the Group of Twenty (G20) to enhance cross-border payments.
Abu Dhabi, November 6th, 2023: Buna, the cross-border payment system operated by Arab Regional Payments Clearing and Settlement Organization “ARPCSO”, which is owned by the Arab Monetary Fund, announced Abu Dhabi Commercial Bank (ADCB) and Jordan Ahli Bank (ahli) as the first users of its Payment versus Payment (PvP) service, which supports safer settlement for foreign exchange (FX) trades.
Buna’s PvP mechanism ensures that settlement in one currency occurs if and only if the settlement of the other currency occurs simultaneously, resulting in a more efficient and secure way of conducting settlement of foreign exchange transactions, in line with one of the building blocks of the G20 roadmap to enhance cross-border payments.
In Buna, the PvP mechanism comes together with an FX marketplace where participants within the Buna system can arrange FX deals directly between each other without the involvement of other intermediaries. The service supports FX transaction in any pair of the six currencies available in Buna, which are Emirati dirham (AED), Egyptian pound (EGP), Saudi Riyal (SAR), Jordanian dinar (JOD), US dollar (USD) and euro (EUR).
On this occasion, Mehdi Manaa, Chief Executive Officer of Buna said: “We are very happy of the successful implementation of our PvP service. The combination of a cross-currency marketplace and a secure settlement mechanism in one system is expected to be instrumental in enhancing cross-border payments and offering a secure and efficient experience to the Buna participants.” He added “With this achievement, Buna continues driving innovation and fostering economic ties between regions. I would like to thank Abu Dhabi Commercial Bank and Jordan Ahli Bank for their pioneering role in this context”.
Mohammed Al Jayyash, Group Chief Operations Officer at ADCB said: “Value creating partnerships are important part of ADCB’s approach to customer service excellence. The Bank has invested significantly in digital platforms to ensure market leading services for our customers, and we see this collaboration with BUNA as an important contribution to safe and efficient cross border payments. By adopting Buna’s PvP mechanism for FX settlement, we are reinforcing our leading role in the cross-border payment innovation.”
Commending this milestone, Mr. Rami Da’na, Jordan Ahli Bank’s Chief Operations & Support Sector Officer said: “Jordan has been at the forefront of launching innovative payment services, and we at Jordan Ahli Bank have been spearheading this effort in collaboration with Buna. we are happy to contribute to this milestone by creating new funding options for the Jordanian dinar, as a key Arab currency for cross-border payments. I look forward to further expanding our business opportunities through the collaboration with other banks in Buna”.