Beijing launches China International Payment System

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee


 The China International Payment System (CIPS), China’s answer to the SWIFT secure financial messaging service, officially came into operation yesterday. CIPS “will allow increasing efficiency of cross-border settlement in yuans and encourage the yuan’s use globally,” the deputy governor of the People’s Bank of China Fan Yifei told guests at an opening ceremony in Shanghai.
The new payment system will also provide support for the real economy and improve Chinese companies’ access to global markets, he added. 
CIPS is designed to facilitate cross-border transactions directly in yuans, and the government hopes that it will help increase international recognition of China’s national currency that it wants to rival the US dollar as a global currency for trade and investment. The “redback” is now the fourth most-used currency for global payments but its share by value remains low and stood at just 2.8% in August, according to Swift.