China Launches International Payment System To Globalise Yuan

from The Economic Times: China today launched the first phase of its much anticipated China International Payment System (CIPS), a milestone in bolstering yuan's global usage and furthering cross-border clearing of its currency from the Chinese mainland instead of offshore centres abroad.

The CIPS provides capital settlement and clearing services for cross-border yuan transactions for financial institutions domestically and abroad.

It will enhance efficiency and increase global use of the Chinese currency, said Fan Yifei, vice president of the central bank, the People's Bank of China.

Previously, cross-border yuan clearing had to be done either through one of the offshore yuan clearing banks in places like Hong Kong, Singapore and London, or else with the help of a corresponding bank on the Chinese mainland.

CIPS will have a significant role in shoring up China's real economy and promoting the "going abroad" strategy of domestic enterprises, Fan said.

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