This policy creates interoperable South–South and regional payment systems to reduce reliance on the US dollar and costly correspondent banking. Its design includes regional clearing unions, cross-border digital payment infrastructure, and reciprocal central bank swap lines. The goal is to lower transaction costs, safeguard economies from sanctions and exchange volatility, and make remittances more affordable.
Implementation requires cooperation among central banks, harmonized digital standards, and safeguards against illicit flows.
This policy is desirable because it enhances financial autonomy, reduces vulnerabilities linked to dollar dependence, and directly benefits low-income households reliant on remittances.
