The upcoming launch of the CARICOM Payments and Settlement System (CAPSS) is set to transform how money moves across the Caribbean and between the region and Africa. Governor Timothy N. J. Antoine of the Eastern Caribbean Central Bank (ECCB) says the system will enhance trade, investment, and financial inclusion, particularly for Micro, Small, and Medium Enterprises (MSMEs).
Speaking at the Caribbean Development Bank’s 55th Annual Meeting held in Brazil, Governor Antoine emphasized that CAPSS will make cross-border payments faster, cheaper, and less dependent on US dollar transactions and correspondent banks. “We must imagine what CAPSS can do for our region,” he told the audience, noting the critical role MSMEs play in driving employment and growth.
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Key Benefits of CAPSS:
- Faster, low-cost transfers across the Caribbean in local currencies.
- Reduced dependency on external correspondent banks and US dollar transactions.
- Greater support for MSMEs through improved access to regional trade and payment channels.
- Stronger economic ties with Africa, using similar frameworks to Africa’s PAPSS (Pan-African Payments and Settlement System).
The inspiration for CAPSS comes from PAPSS, a system launched by the African Export-Import Bank (Afreximbank) in 2022 to boost intra-African trade by cutting costs and avoiding external currencies.
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Governor Antoine shared that discussions with Afreximbank began over two years ago and eventually led the CARICOM Committee of Central Bank Governors to explore a similar system for the Caribbean. As part of the groundwork, the Central Bank of Barbados and Central Bank of The Bahamas recently completed a successful proof of concept for CAPSS.
“We now want to move to the pilot stage,” Governor Antoine said. “That means bringing at least two more central banks on board, and the ECCB will likely be one of them.”
The pilot phase of CAPSS signals a significant step toward regional financial integration and greater economic resilience, positioning CARICOM for a future of more efficient and inclusive trade.
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