Starting Monday, 9 September 2024, South African banks will cease processing electronic funds transfer (EFT) payments and collections within the Common Monetary Area (CMA), Cape {town} Etc reports.
This region includes South Africa, Namibia, Lesotho, and Eswatini and operates under a shared monetary policy.
In the CMA, each country uses its own currency, but the South African rand is legal tender across all member states.
Other currencies, like the Lesotho loti, Namibian dollar, and Swazi lilangeni, are pegged to the rand.
This arrangement has allowed for the processing of low-value cross-border payments through South Africas domestic retail payment system, simplifying transactions, including debit orders for businesses serving clients in neighbouring countries.
