Gambia begins modernization of payment system - The Gambian Central Bank, has embarked on the modernization of the country's payments, clearing and settlements system under the auspices of the West African Monetary Institution.

The new system is part of a regional payments system initiative and forms an integral part of the prerequisites for effective West African monetary integration, Amadou Colley governor of the Central Bank of the Gambia, said on Tuesday.

He told a press briefing that the system would lower costs, make payments and settlements more accurate and pave the way for increased financial innovations. The process includes the establishment of the Real Time Gross Settlement System (RTGS), the Automated Cheque Processing or Automated Clearing House (ACP OR ACH), Securities Settlement System (SSS) and electronic National Switch for retail payments. Colly also said the continued dependence on cash payments resulted in delay in cheque processing and inefficiency, adding that the cost of printing notes was high.

“The Central Bank currently operates a manual cheque clearing system, where commercial banks meet to physically exchange cheques and net balances settled through their current accounts held with the Central Bank, which is time consuming and less efficient in detecting Cheque frauds,” he said.

“The Gambia has registered significant progress in her socio-economic development, with growth rates of GDP averaging between 5-6 per cent per annum,” he said, adding that these gains would be consolidated through the modernization of the payments system and the creation of a conducive environment for further growth.

Pana 16/11/2011