By EPN Reporter
MBABANE – The Central Bank of Eswatini (CBE) is aiming to improve its performance through the new Version 3 of the Cross Border Foreign Exchange Transaction Reporting System.
The system was launched yesterday by CBE Governor Dr Phil Mnisi. Mnisi said this upgrade had allowed them to implement the Southern African Development Community (SADC) Region Harmonised Codes, which were in line with the International Monetary Fund (IMF) requirements.
“It is expected that other Common Monetary Area (CMA) countries will adopt the SADC harmonised codes by 2025. However, Eswatini has already achieved this objective,” Mnisi said. According to the governor, the CBE was continuously aligning its regulatory processes with the changing business environment to ensure that businesses were not stifled and that global initiatives were adopted more easily.
In line with CMA Strategic initiatives, the Cross Border Foreign Exchange Transaction Reporting System played a crucial role in the planned migration to the Capital Flow Management project, according to Mnisi. He said this new approach would see the CBE more focused on monitoring flows, rather than relying primarily on pre-approval-based transaction processes.
“The accurate, timely, and complete data collection capabilities will ensure that no information is lost, and the country can fully account for all economic activities,” he said. Mnisi further stated that data sharing was becoming very important. He said it was no longer a choice, but a logical expectation that allowed people to work together. Additionally, some local laws made it mandatory for institutions to share data responsibly, according to the governor. He thanked the country’s policymakers for making allowing responsible data sharing to be a reality.
The migration to Version 3 of the Reporting System, according to Mnisi, had brought various strategic benefits, including the integration with the Eswatini Revenue Services (ERS) to automatically extract payments and match them against imported and exported goods.
This functionality, Mnisi said, would reduce the illicit financial flows and capital shifting. Additionally, the enhanced system was the pivotal backbone for the implementation of further Exchange Control relaxations, enabling Government to position itself better in terms of creating a conducive environment for business, according to the governor.
He said as a Central Bank, they would be reviewing their strategy document to measure progress and align themselves with the CMA and SADC region’s three-year strategic initiatives which were discussed at all meetings. He congratulated the Central Bank Project Team, the South African Reserve Bank colleagues, and Reporting Entities for making this migration to Version 3 a success.
