As one of the first direct participants in China's Cross-border Interbank Payment System (CIPS), SPD Bank started the cross-border yuan transactions under the CIPS on Thursday.
Commercial banks will embrace huge opportunities in following years as China pushes forward the "Belt and Road" initiative and accelerates globalization of yuan, a senior manager of SPD Bank said. The People's Bank of China (PBOC), China's central bank, launched the first phase of its much-anticipated international payment system on Thursday in Shanghai.
The system, which provides capital settlement and clearing services for cross-border yuan transactions, will enhance efficiency and increase global use of the Chinese currency by cutting costs and shortening the process time, said Fan Yifei, vice president of the PBOC. Banks directly participating in the CIPS include 19 Chinese and foreign banks. Indirect participants include 38 Chinese banks and 138 foreign banks, the PBOC said in a statement on its website.
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