Banks and financial institutions from China will now be able to complete transactions across the Middle East and Africa (MEA) and Asia following new agreements between the People’s Bank of China‘s Cross-Border Interbank Payment System (CIPS) and six players in the region.
This move marks the first time foreign direct partnerships have been made to facilitate clearing and settlement services in Renminbi (RMB), the official Chinese currency, across borders. Announced at the China International Finance Exhibition 2025 in Shanghai, Standard Bank, African Export-Import Bank, First Abu Dhabi Bank (FAB), Eldik Bank, and United Overseas Bank will act as offshore yuan centres for CIPS across MEA and Central Asia.
The People’s Bank of China launched CIPS for cross-border yuan transactions on 8 October 2015. Its services include cross-border trade settlements, cross-border capital account settlements, and cross-border payment and settlement services for financial institutions and individuals.
CIPS had processed over CNY675 trillion ($94trillion) in various payment transactions as of 31 May, according to data released by Xinhua News Agency. With 1,683 participants, CIPS-related services reach over 180 countries and regions through a network of more than 4,900 legal entity financial institutions, leveraging direct and indirect participants, forming a global network backbone supported by Chinese banks, clearing institutions, and systemically important foreign banks.
A new era for CIPS
The first batch of CIPS direct participants included 19 Chinese and foreign lenders. Before its launch, cross-border yuan clearing primarily relied on the SWIFT messaging system to transmit payment instructions, with actual clearing executed through China’s National Advanced Payment System or its High-Value Payment System.
Responding to what the partnership means for relations between the UAE and China, Hana Al Rostamani, group chief executive officer at FAB, said: “With a fully licensed branch in Mainland China, FAB holds a unique position among UAE banks enabling it to lead on the integration of the Renminbi into our existing global banking service offering.
“Our direct participation in CIPS significantly enhances our ability to provide faster, more secure and efficient RMB payment solutions and deliver real-time settlement capabilities. This development reinforces our leadership in regional cash management and clearing. It also strengthens FAB’s role as a trusted financial infrastructure partner for clients transacting between China, the UAE and the broader MENA region.
“As cross-border transactions accelerate, we remain committed to delivering the infrastructure and innovation that enable financial connectivity at pace.”
FAB’s direct participation in CIPS enhances its ability to provide clients with faster, more secure and efficient cross-border RMB payment solutions, reinforcing its leadership in cash management and clearing across the MEA region, as well as its reputation for operational excellence and robust risk management.
FAB is currently the only UAE bank operating a fully licensed branch in Mainland China and is committed to supporting the needs of clients and partners in both markets.
Unlocking Africa’s economic potential
According to Standard Bank’s Trade Barometer 2024, 34 per cent of surveyed businesses source their imports from China, in contrast to 23 per cent of the businesses surveyed in May 2023. This is indicative of the growing trade between Africa and China.
Anne Aliker, group head of client coverage at Standard Bank Corporate Investment Banking, commented on the partnership, saying: “As an institution that is invested in driving Africa’s economic growth, we are excited to be the first bank on the continent that offers CIPS transactions. This demonstrates our commitment and ability to deliver innovative solutions that truly add value for our clients.”
“We believe that CIPS will contribute to unlocking Africa’s economic potential by fast-tracking the advancement in trade that will support infrastructure development, greater regional integration and efficient deployment of capital.”
The next step in facilitating cross-border trade
CIPS also launched its international yuan-denominated letter of credit service, one of the most commonly used settlement methods in global trade. Cross-Border Interbank Payment System introduces the new service to support market entities conducting international trade settlements in yuan.
