China closes gap with U.S. as African countries, others join yuan payment system

Business Insider

22-06-2025

China has added more financial institutions from Africa, the Gulf, and Central Asia to its cross-border yuan payment system, a bold move to strengthen the global role of its currency amid intensifying rivalry with the US.
China strengthens its cross-border yuan payment system by adding six financial institutions from Africa, the Gulf, and Central Asia.
This expansion seeks to internationalize the yuan and reduce reliance on the US dollar in global transactions.
The initiative aligns China strategically amidst shifting geopolitical alliances and financial system dynamics.
According to a South China morning post; The six financial entities, including 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 at a ceremony held in Shanghai last week.
The post clarified that as direct participants, these institutions can independently process cross-border yuan payments, unlike indirect participants who must route their transactions through direct members.
This development is part of Beijing's ongoing efforts to internationalize the yuan and reduce dependence on the US dollar-dominated financial system, while hedging against potential US sanctions as geopolitical tensions with Washington continue to influence global markets architecture and redirect alliances.
Notably, this move aligns with Moscow and Tehran's own efforts to circumvent Western financial restrictions, as both nations explore relative payment systems and deepen economic ties.
CIPS breaks into global payment system
CIPS, launched in 2015 as China's alternative to the widely used SWIFT network, has been gradually attracting corporate and government entities globally, to fast track its progress.
As of May 2025, the system reportedly had 174 direct participants, including domestic and international branches of Chinese banks, as well as major Western financial institutions such as HSBC, JP Morgan, and Citibank.
The latest additions reflect China's growing ties with regions that are also seeking alternative financial channels and minimizing exposure to Western regulatory risks and sanctions.
With this expansion, the Asian giant takes another bold step towards cementing itself as a key player in the emerging multipolar financial landscape.