Catenaa, Monday, June 23, 2025-China has added six major financial institutions from Africa, the Gulf, and Central Asia to its cross-border yuan payment system, accelerating efforts to internationalize its currency and reduce global reliance on the US dollar.
At a ceremony in Shanghai last week, the African Export-Import Bank, First Abu Dhabi Bank, South Africa’s Standard Bank, Singapore’s United Overseas Bank, Eldik Bank of Kyrgyzstan, and Chongwa (Macau) Financial Asset Exchange officially joined the Cross-border Interbank Payment System (CIPS) as direct participants.
This upgrade allows the institutions to independently conduct cross-border yuan transactions without relying on intermediaries, unlike indirect participants. The move is part of Beijing’s broader strategy to position the yuan as a global settlement currency and build resilience against US-led financial restrictions.
Launched in 2015 as an alternative to SWIFT, CIPS now includes 174 direct participants globally, among them international arms of Chinese banks and Western firms such as HSBC, JP Morgan, and Citibank.
China’s expansion of CIPS aligns with similar strategies by Russia and Iran to bypass Western sanctions, reflecting a growing push among emerging economies to rewire the global payments infrastructure.
The latest additions mark a deepening of Beijing’s financial ties with countries seeking greater autonomy from US-centric systems, reinforcing China’s role in shaping a multipolar economic order.
