ABU DHABI — The Central Bank of the UAE (CBUAE) has signed an agreement with the Arab Monetary Fund (AMF) to include the UAE Dirham as a settlement currency in the Arab Regional payments clearing and settlement system called "Buna".

"Buna" is a multicurrency platform that provides clearing and settlement services of cross-border payments in eligible Arab and foreign currencies across the Arab region and beyond, with links to major trade partners.

This project is overseen by a committee chaired by CBUAE governor and with the membership of the governors of certain Arab central banks.

CBUAE has confirmed that the UAE Dirham will be the first settlement currency made available in "Buna" platform for the effective use of financial institutions that met participation eligibility criteria.

In this regard, the CBUAE has commended the efforts extended by AMF in developing the "Buna" system, particularly in terms of enhancing the level of compliance of Buna’s operations with the relevant international principles and standards.

It also emphasized the importance of Arab central banks collaboration to achieve the strategic objectives of this cross-border payment platform. — WAM