THE China International Payment System (CIPS) which will be set up and hosted in Shanghai next year is a key component of the infrastructure for the Shanghai International Financial Center, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) said yesterday.
The new international payment system developed by the People's Bank of China is designed to make cross-border settlement in yuan more efficient and to further boost the global profile of the Chinese currency.
The development and deployment of the right international payment infrastructure in Shanghai is important for the development of financial industry in the city, Patrick de Courcy, head of markets and initiatives of SWIFT for Asia Pacific, said yesterday in Shanghai.
"CIPS is a critical development in international payment systems, which will work as a complementary facility to the current yuan clearing services in offshore markets such as Hong Kong, Singapore and Taiwan," said de Courcy.
SWIFT, the Brussels-based messaging service provider for financial institutions, currently has more than 300 users in China, including 125 foreign banks and financial institutions.