Saudi Central Bank Launches Instant Payments System

The Saudi Central Bank launched Thursday the instant payments system. Asharq Al-Awsat
The Saudi Central Bank launched Thursday the instant payments system. Asharq Al-Awsat
TT
20

Saudi Central Bank Launches Instant Payments System

The Saudi Central Bank launched Thursday the instant payments system. Asharq Al-Awsat
The Saudi Central Bank launched Thursday the instant payments system. Asharq Al-Awsat

The Saudi Central Bank (SAMA) launched on Thursday the instant payments system, effective from Feb. 21.

This follows the successful launch of the first phase of the trial to activate the system with a number of Saudi local banks.

The system will enable financial institutions, companies, and individuals to complete instant transfers among various banks within 24 hours, seven days a week.

The Central Bank stated that the system, developed by Saudi Payments, a wholly-owned subsidiary of SAMA, will reinforce economic development.

It will also contribute to increasing transparency in payments between companies and individuals, activating innovation in financial services, as well as upgrading services provided to beneficiaries.

The system further increases the effectiveness of financial transactions among all parties in the corporate and retail sectors and enables banking institutions and financial technology companies to improve financial products and manage cash flows in businesses.

The Central Bank's statement emphasized that the system works seamlessly between Saudi banks and financial technology companies, and it helps reduce operational costs and provide innovative solutions to the financial sector.

SAMA will supervise the new system which, it said, would achieve the Saudi Vision 2030 objective in making the Kingdom less dependent on cash.

Two years ago, SAMA, represented by Saudi Payments, inked a deal with Vocalink and IBM to develop the financial sector infrastructure. It expected an increase of digital payments by 15 percent, which will lead to saving SAR16 billion ($4.2 billion) from the cost of cash during the first five years of operation.



Gold Falls to One-week Low as Dollar Firms after Tariff Deadline Extension

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
TT
20

Gold Falls to One-week Low as Dollar Firms after Tariff Deadline Extension

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices retreated to a one-week low on Monday as the dollar firmed and traders digested US President Donald Trump's extension of his July 9 tariff deadline to August 1 and assertion that the US is close to several trade deals.

Spot gold was down 0.8% at $3,307.87 an ounce at 1302 GMT after hitting its lowest since June 30 at $3,296.09. US gold futures lost 0.7% to $3,318.

The stronger dollar, up 0.2% against a basket of other major currencies, makes dollar-priced gold more expensive for buyers with other currencies, Reuters reported.

"The market volumes remain quiet at this moment, and price action is probably still just reflecting the latest piece of economic data, but also starting to look forward to the potential for trade deals to be announced," said Daniel Ghali, commodity strategist at TD Securities.

Last week's stronger than expected US payroll data cemented expectations that the Federal Reserve is unlikely to cut interest rates as early as previously expected.

Minutes of the Fed's latest policy meeting and speeches by several Fed officials are due this week for further insights into the central bank's policy path.

Elsewhere, China's central bank added gold to its reserves in June for an eighth consecutive month, official data from the People's Bank of China (PBOC) showed on Monday.

"The PBoC in particular has been diversifying foreign exchange reserves substantially and an uptick in uncertainty and geopolitical risk may speed up the process," said Zain Vawda, analyst at MarketPulse by OANDA.

In other precious metals, spot silver fell 1.6% to $36.32 an ounce, platinum shed 2.9% to $1,350.97 and palladium lost 3% to $1,100.65.