Caribbean Payment System Entered Pilot Phase
Businesses across 11 nations can now settle cross-border transactions in local currencies to bypass U.S. dollar reliance.
Updated on Oct. 13, 2026 in International Trade
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The CARICOM Payment and Settlement System has launched its pilot phase, enabling real-time transactions in local currencies among 11 Caribbean jurisdictions. The system offers operators an alternative to the U.S. dollar, designed to bypass a shrinking network of correspondent banks.
Why it matters
The initiative seeks to reduce foreign exchange conversion costs and trade barriers for regional businesses. It provides a vital payment route after the Caribbean saw 40% of its correspondent banks withdraw between 2009 and 2024.
The system covers 11 jurisdictions where intra-CARICOM goods exports currently account for approximately 8% of the bloc's total goods trade. It connects with the Pan-African Payment and Settlement System, which already links 16 African nations.
The players
CARICOM
An economic and political community of 15 Caribbean nations and dependencies working to integrate regional markets.
African Export-Import Bank
A pan-African multilateral financial institution that provides financing and trade services for regional development.
Montran Corp
A global provider of financial software specializing in clearing and settlement systems for central banks.
The details
Developed by regional central banks and the African Export-Import Bank, the system uses software from Montran Corp to link national payment infrastructures. By settling payments directly in local currencies, it eliminates the need for intermediaries that previously processed trades in U.S. dollars. This direct settlement path is intended to sustain trade volumes as traditional banking services become less available in the region.
Timeline
2009-2024: 40% of correspondent banks withdrew from the Caribbean.
October 2023: CARICOM central banks adopted the system as their preferred settlement method.
February 2025: A proof of concept was conducted between the Central Bank of The Bahamas and Barbados.
November 2025: Central bank governors expanded the system testing.
November 2026: Central bankers are scheduled to meet to discuss the future timetable.
Market Landscape
The CARICOM system follows the operational model established by the Pan-African Payment and Settlement System. It marks a broader trend of regional blocs seeking payment autonomy to insulate local trade from the volatility of global correspondent banking networks.
Business operators in the Caribbean should monitor if their current banking partners support these new local currency settlement rails. Tracking transaction fees compared to traditional U.S. dollar wires will be essential for managing margins during the pilot rollout.
The takeaway
The system offers a path to lower currency conversion costs for intra-regional trade. Operators should monitor the November 2026 central bank meeting for updates on the pilot status and potential expansion of available currencies.
Further reading
For more on regional trade developments, visit the International Trade section.
Source note: This article includes information reported by Global Finance Magazine.
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