China launches 1st phase cross-border RMB payment system
Oct 13, 2015

Oct 13, 2015 (China Knowledge) – China successfully launched the first phase of the cross-border RMB payment system (CIPS) on Oct 8, marking a significant milestone to boost RMB internationalization, according to a statement released by the People’s Bank of China (PBOC).

As an important financial infrastructure, CIPS can provide capital settlement services for RMB cross-border and offshore yuan transactions to financial institutions at home and abroad.

It is reported that there are a total of 19 banks participating in the system's first phase implementation, including Industrial and Commercial Bank of China<601398><1398>, Agricultural Bank of China<601288><1288> and China Construction Bank<601939><0939>.

RMB has been China's second largest cross-border payment currency and the world’s fourth largest payment currency in recent years since a series of relevant policies was unleashed. HSBC forecasted that more than a half of China's foreign trade would be appoint RMB as settlement currency.

Furthermore, the central bank in Sep signed a Memorandum of Cooperation with the Bank of Zambia to establish the RMB clearing services in Zambia, and will soon appoint a RMB clearing bank in Zambia.