The Eastern Caribbean Central Bank (ECCB) reported remarks by Governor Timothy N. J. Antoine on the soon-to-be-piloted CARICOM Payments and Settlement System (CAPSS), positioning it as a mechanism to support trade and investment within the Caribbean Community (CARICOM) and between CARICOM and Africa by enabling faster, cheaper transfers and reducing reliance on correspondent banking. CAPSS is described as a real-time, low-cost system that would process transactions in local currencies. Governor Antoine noted that much intra-CARICOM trade is denominated in USD, creating foreign exchange costs and driving dependence on correspondent banks, and argued that CAPSS could particularly benefit micro, small and medium enterprises. A proof of concept has been completed by the Central Bank of Barbados and the Central Bank of The Bahamas. The next step outlined is to pursue an initial pilot by bringing at least two additional central banks on board, with the ECCB indicated as a likely participant.
Eastern Caribbean Central Bank 2025-06-19
Eastern Caribbean Central Bank highlights planned pilot of CARICOM Payments and Settlement System to speed up and lower the cost of cross-border transfers
The Eastern Caribbean Central Bank plans to pilot the CARICOM Payments and Settlement System (CAPSS) for faster, cheaper transfers within the Caribbean Community and between CARICOM and Africa. CAPSS aims to reduce foreign exchange costs and reliance on correspondent banks by processing transactions in local currencies. A proof of concept is complete, with the ECCB likely participating in the initial pilot alongside other central banks.