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Shanghai, China – China’s Cross-Border Interbank Payment System (CIPS) has significantly expanded its global reach and service offerings, announcing new agreements with six foreign financial institutions to become direct participants. These landmark deals, signed at the three-day China International Finance Exhibition 2025 in Shanghai, mark a pivotal moment in the internationalization of the yuan (RMB).
The newly added direct participants, as reported by CCTV News, include:
* Standard Bank (South Africa)
* African Export-Import Bank (Afreximbank)
* First Abu Dhabi Bank (UAE)
* Eldik Bank (Kyrgyzstan)
* United Overseas Bank (UOB – Singapore)
* Bangkok Bank (Thailand) – an online inauguration ceremony was held for its joining.
This expansion is particularly notable as it marks the first time CIPS’s overseas direct participant coverage extends to key offshore yuan centers in Africa, the Middle East, and Central Asia, alongside further strengthening its presence in Southeast Asia. This strategic move aims to further facilitate the use of the yuan in cross-border trade and financial transactions across these regions.
CIPS: A Growing Global Network
Launched by the People’s Bank of China (PBOC) on October 8, 2015, CIPS serves as the primary channel for cross-border yuan clearing and settlement. It provides comprehensive services for cross-border trade settlements, capital account settlements, and payment and settlement services for financial institutions and individuals. As of the end of May, CIPS boasted a network of 174 direct participants and 1,509 indirect participants globally, covering over 4,900 corporate banking institutions across 187 countries and regions.
Benefits of Direct Participation:
Becoming a direct participant in CIPS offers these foreign lenders several key advantages:
* Real-time Gross Settlement: Direct access enables immediate and final settlement of RMB transactions, significantly improving efficiency and reducing settlement risk for cross-border payments.
* Reduced Costs: By shortening payment paths and reducing reliance on multiple correspondent banks, direct participation can lower clearing and transaction costs.
* Enhanced Control and Transparency: Direct participants gain greater direct control over their RMB flows and improved visibility into the settlement process.
* Broader Network Access: These banks can now directly connect to CIPS’s extensive network, facilitating cross-border RMB payments for their clients and acting as clearing agents for indirect participants in their respective regions.
* Facilitating RMB Internationalization: For China, increasing direct foreign participation is crucial to its strategy of promoting the yuan’s wider use in global trade, investment, and finance, thereby diversifying the international monetary system.
New International Yuan-Denominated Letter of Credit Service
In a complementary development, CIPS also launched its international yuan-denominated letter of credit (L/C) service on the same day as the exhibition opened. The letter of credit is a widely used settlement method in global trade. This new service is designed to support market entities in conducting international trade settlements directly in yuan, streamlining processes and enhancing efficiency for RMB-denominated trade finance. This move further bolsters CIPS’s role in facilitating international commerce in the Chinese currency.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brok ers