Amman: Central Bank of Jordan (CBJ) and Central Bank of Egypt (CBE) on Wednesday signed an appendix to the memorandum of understanding (MoU) related to banking supervision, which was concluded by the two banks since 2004.
The new appendix features supervision on e-payment systems and services, financial technology activities and innovations, according to a CBJ statement released on Wednesday.
This step was made due to the Kingdom’s cooperation with Arab countries in the areas of payment systems and services and financial technology activities, which were achieved in light of the “remarkable” development of both countries’ financial infrastructure, which reflected CBJ’s efforts to promote transformation to a society less dependent on banknotes, the statement said.
This shift comes within the framework of implementing axes of National Electronic Payments Strategy 2023-2025, which was launched by CBJ last February, in line with Economic Modernization Vision (EMV) and its executive program, the statement added.
The memo was signed by CBJ Deputy Governor, Khaldoun Wishah, and Deputy Governor of Egyptian CBE, Jamal Najm, in Cairo.
The memo aims to enhance joint coordination in aspects related to e-payment systems and services and related supervision, primarily mobile phone and digital payments and related regulatory technology, as well as interconnecting the two countries’ payment services and systems, the statement said.
In addition, the memo seeks to provide “safe and appropriate” channels for transferring funds electronically between the two countries, opening way for Jordanian and Egyptian financial institutions to operate in both markets, and facilitating transfers of Egyptians working in Jordan to their families and relatives in Egypt and remittances of Jordanian community in Egypt.
The two countries’ central banks are looking forward to reaping benefits of this MoU in the near future by supporting their joint efforts to create a “safe and efficient” e-payment system in both countries, the statement noted.
The two banks also seek to enhance joint integration of modern financial technologies and their related innovations, which would lead to providing and implementing common and unique business models that keep pace with international best practices.
Source: Jordan News Agency