Latest news with #Cross-borderInterbankPaymentSystem
Qatar Tribune
22-06-2025
- Business
- Qatar Tribune
China's payment system spreads across Africa and Asia amid US trade war
Agencies China's cross-border yuan payment system has signed up more financial entities from Africa, Central Asia and the Middle East, as Beijing accelerates efforts to promote the global use of its currency amid rising tensions with the United States. A group of six financial institutions officially joined the yuan-based Cross-border Interbank Payment System (CIPS) as direct participants during a ceremony in Shanghai on Wednesday, becoming the latest entities to sign up to China's alternative to the Society for Worldwide Interbank Financial Telecommunication system. The newcomers include the African Export-Import Bank, First Abu Dhabi Bank, South Africa's Standard Bank, Singapore's United Overseas Bank, the Kyrgyzstan-based Eldik Bank, and Chongwa (Macau) Financial Asset Exchange, a state-owned asset trading platform from the special administrative region, according to state broadcaster CCTV. Beijing has been promoting the CIPS – which was first launched in 2015 – as it strives to expand the use of the yuan in global trade and hedge against any potential moves by the United States to impose financial sanctions on Chinese system had 174 direct participants as of the end of May, though most of them were made up of domestic and overseas branches of Chinese banks, as well as Chinese branches of global financial giants such as HSBC, JP Morgan and Citibank. A direct participant refers to an entity that owns a CIPS account and can directly remit through the system, while indirect participants have to rely on others to complete transactions on their behalf. A total of 175 trillion yuan) of transactions was made via the CIPS last year, an increase of 43 per cent year on year. Beijing has been stepping up efforts to popularise the system in recent months as tensions with the US have risen over a slew of trade and technology issues, with Chinese officials warning of the danger of financial tools being weaponised. 'As geopolitical tensions escalate, traditional cross-border payment infrastructure is prone to being politicised and weaponised as a unilateral sanction tool, undermining the international financial order,' said Pan Gongsheng, governor of the People's Bank of China, at the Lujiazui Forum on Pan did not name a specific country during the speech, the remarks were likely aimed at Washington. Chinese academics have long warned of the danger posed by US financial sanctions targeting China, citing the Russia case, and anxiety in Beijing jumped after US President Donald Trump raised tariffs on Chinese goods to unprecedented levels in April. Though Beijing and Washington have since signed a trade truce – which included an agreement to roll back tariffs on each other's goods for 90 days – tensions remain high, with the two sides yet to agree a permanent deal to de-escalate the trade war.
Business Insider
22-06-2025
- Business
- Business Insider
China closes gap with U.S. as African countries, others join yuan payment system
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.
Business Times
19-06-2025
- Business
- Business Times
Stocks to watch: DBS, UOB, Sats, Far East Orchard, GuocoLand, Elite UK Reit
THE following companies saw new developments that may affect trading of their securities on Thursday (Jun 19): DBS : The lender inked a memorandum of understanding with the the Australian Trade and Investment Commission on Wednesday to deepen investment links between Australia and South-east Asia. The two will collaborate to help Australian companies expand into markets in the region, including Singapore, Indonesia, Malaysia and Vietnam. The counter ended on Wednesday 0.5 per cent or S$0.23 lower at S$44.23. UOB : The bank and its wholly-owned subsidiary UOB China have become direct participants in China's Cross-border Interbank Payment System, a wholesale payment system authorised by the People's Bank of China that facilitates the settlement of trading and investments in renminbi. This will enable UOB to provide cross-border renminbi clearing, settlement and payment services to businesses and financial institutions within and outside China, the bank said. Its shares closed on Wednesday 0.3 per cent or S$0.12 lower at S$34.83. Sats : In-flight caterer and ground handler Sats on Wednesday priced US$100 million in fixed-rate notes due Jun 23, 2030 under its US$3 billion multicurrency debt issuance programme. The net proceeds will be used to refinance existing borrowings and the issuance will not result in an increase in the group's overall debt. The notes are expected to be issued on Jun 23 and the interest rate is fixed at 4.648 per cent each year, payable semi-annually in arrear. Sats shares closed flat at S$3.08 on Wednesday. Far East Orchard (FEO) : The group's first private student accommodation development fund secured £96 million (S$166 million) in total committed capital at its closing. The sum includes £70 million raised at the fund's first closing in August last year. The fund focuses on purpose-built student accommodation development opportunities in strong universities across the United Kingdom and has committed more than 35 per cent of the raised equity into two such developments to date. These are a 273-bed project in Glasgow, Scotland and a 239-bed one at Plymouth Grove in Manchester, England. Shares of Far East Orchard closed flat at S$1 on Wednesday, before the announcement. GuocoLand : Its subsidiary, GuocoLand Malaysia, said on Wednesday that its unit GLM Emerald Hills was directed to pay monies to a contractor it is embroiled in a dispute with in an arbitration matter. The current estimated net financial impact in relation to the arbitration is RM 5.5 million. GLM EHills is in consultation with solicitors on the next course of action, including to set aside the arbitration award, and will announce material development in due course. The counter ended on Wednesday 0.7 per cent or S$0.01 higher at S$1.46. Elite UK Reit : The manager on Thursday announced its issue of some 13.6 million new private placement units at an issue price of £0.295 (S$0.51) per unit, bringing the total number of units in issue to around 609.9 million. The new units will commence trading on the main board of the Singapore Exchange at 9 am on Thursday. Units of Elite UK Reit closed Wednesday flat at £0.325.
Business Times
18-06-2025
- Business
- Business Times
UOB becomes direct participant in China's cross-border clearing and settlement system
[SINGAPORE] UOB and its wholly-owned subsidiary UOB China have become direct participants in China's Cross-border Interbank Payment System (CIPS), the bank said on Wednesday (Jun 18). This is a wholesale payment system, authorised by the People's Bank of China, to facilitate the settlement of trading and investments in renminbi. As at May 2025, it had 174 direct participants and 1,509 indirect participants. Direct participants can open an account in the CIPS; indirect participants have to go through direct participants to handle cross-border renminbi payments and settlements. UOB and UOB China were previously indirect participants. The direct access will enable UOB to provide cross-border renminbi clearing, settlement and payment services to businesses and financial institutions within and outside China, the bank said. UOB clients can enjoy real-time gross settlement and remittance at lower payment and clearing costs. Being on board CIPS also means the bank can expand its trading network by connecting CIPS participants globally and handling cross-border renminbi payments and settlements on behalf of indirect participants. UOB said that its cross-border renminbi payments and trade-settlement flows doubled between 2023 and 2024, and that it expects the use of renminbi for investments, payments and trade to continue to grow. So Lay Hua, UOB head of group transaction banking, expects the direct access will 'significantly enhance' the bank's capability to serve regional clients in their renminbi businesses.
South China Morning Post
24-03-2025
- Business
- South China Morning Post
Decline of the US dollar as dominant global currency is inevitable: economists
The global economy is inexorably moving towards a multicurrency system as China's persistent efforts to internationalise the yuan and technological changes erode the US dollar's dominant position, economists said at a conference on Monday. Advertisement 'Trade invoicing in yuan went from zero per cent to 30 per cent in the last 10 years, and half of Chinese capital flows are now in yuan, much higher than before,' said Jin Keyu, a professor at the London School of Economics, at a panel hosted by the Milken Institute, a US-based think tank. 'The truth is that there has been a slow decline of the dollar in the data, and the non-conventional reserve currencies – even outside of the yuan – have jumped from 2 per cent to 11 per cent,' she added, noting there is 'consensus' among economists that the world is heading towards 'multicurrency equilibrium' over the long term. The emergence of alternatives to the widely used Society for Worldwide Interbank Financial Telecommunication (Swift) payment system is a 'massive undercurrent' that is accelerating the process of financial diversification, Jin said, adding that the significance of this development was underappreciated. Several new payment systems have gained traction over the past few years, including mBridge – a central bank digital currency platform built using blockchain technology – and the Chinese-designed Cross-border Interbank Payment System (CIPS). Advertisement Beijing has long pursued a strategy of turning the yuan into a global currency to create a stable monetary environment for its own economic development and to reduce the United States' dominance over the global financial system.
