Banks jump on the RMB superhighway

From Banking Technology –

“Banks have been quick to participate in the China International Payment System (Cips) and Sibos has provided the perfect opportunity for them to boast of their involvement. The payments infrastructure, which was launched on 8 October, was described as a “milestone” by Helen Yun, managing director and head of financial institutions China, Bank of America Merrill Lynch. Speaking during the Developing your transaction business with China session on Tuesday, she said the launch came at the right time, just a few days before Sibos opened.”

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CIPS Is Out Of The Crib. How Fast Will It Grow?

From Global Finance -

“As expected it drew some media attention, with the familiar theme that the renminbi—which surpassed the Japanese yen to become the fourth-most traded currency in the world in August, according to SWIFT's RMB Tracker—will eventually overtake the US dollar as the dominant global currency.

The creation of a renminbi-dedicated cross-border clearing system is one pillar supporting the internationalization of the currency. The crucial one, however, is the opening of China’s capital account, a moving target that includes liberalization of the financial sector and cross-border investment flows.

Outside of China, innovation by financial institutions in developing risk management products to align with current and future renminbi demand will also facilitate the currency's growing use.”

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China launches cross-border payment system

From Finextra -

“China's cross-border interbank payments system, established as a yuan-based alternative to the interbank Swift network, has launched with 11 domestic banks and eight foreign institutions onboard.

The CIPS platform will be used to support cross-border goods and services trade settlement, direct investment, as well as financing and individual fund transfers, with the aim of boosting yuan liquidity globally. CIPS uses global payment standards and enables same day clearing across Asia, Oceania, Europe and other time zones through extended operating hours.”

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