CLS Bank International has endorsed the inclusion of the South African rand as a CLS eligible currency, in principle. The currency will become eligible once the full CLS and regulatory approval processes have been satisfied and the technical implementation is completed. It is intended that the currency will go live at the end of the year, alongside the Hong Kong and New Zealand dollars, and Korean won, bringing the number of currencies under the CLS umbrella to 15.
“The South African Reserve Bank (SARB) received formal commitment from two South African banks, regarding their intention to become shareholders of the CLS Group,” says Dave Mitchell, head of the national payment system department at SARB. “The Reserve Bank, in its endeavour to reduce settlement risk of all market participants in the South African rand, supports the domestic banking industry’s direct participation in CLS and thereby also the inclusion of the rand in CLS as a settlement currency.”
According to CLS, more than 55 member banks are now settling FX payment instructions through the system, with over 120 third party customers also live. CLS Bank is now settling on average over 140,000 instructions each day, a gross value in excess of $1.4 trillion.