PBoC plans to start CIPS system by end of the year
(15 June 2015 – China) The first phase of China’s International Payment System (CIPS) will start by the end of the year in Shanghai to handle deals in Europe, Asia and Oceania, according to the People’s Bank of China (PBoC) on 11 June.
According to the PBoC’s yuan internationalisation report, CIPS will run from 9am to 8pm local time and facilitate cross-border trade settlement, direct investments and other yuan deals.
China is drumming up efforts to boost the yuan’s global use as it seeks to have it added to the International Monetary Fund’s Special Drawing Rights basket of currencies that already includes the dollar, euro, yen and pound.
China’s central bank has appointed yuan-clearing lenders in 11 cities including Seoul, Sydney, Kuala Lumpur and Bangkok in the past year.
China plans to actively encourage foreign central banks to include yuan-denominated assets in their foreign-exchange reserves and it may scrap limits on how much onshore yuan bonds they can buy, PBoC said in the report.
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