China to launch 2nd phase of cross-border interbank payment system

SHANGHAI - The second phase of the Cross-border Interbank Payment System (CIPS) will be launched in Shanghai to promote the global use of the Chinese currency and the Belt and Road Initiative.

The upcoming launch of CIPS Phase II in Shanghai will further boost the building of the international financial center there, China's central bank governor Zhou Xiaochuan said at the two-day Lujiazui Forum 2017 which ended Wednesday. Zhou did not provide further information.

The move came about two years after the announcement of the first phase of the CIPS, a payment and settlement system created by the People's Bank of China (PBOC) to provide safe, easy, and efficient settlement services for global financial institutions in doing renminbi cross-border and offshore business.

In October 2015, the central bank announced the official launch of CIPS Phase I, which has greatly increased the efficiency of cross-border clearing and marked major progress in establishing a modern payment system that combines domestic and international renminbi payment.

With the expansion of covered areas and the increase of business volume, CIPS has become more prominent as the main channel of cross-border renminbi payment, said Zhang Xin with China International Payment Service Corp.

By the end of May, CIPS direct participants in terms of high value payment reached 28 and its indirect participants stood at 574, covering 85 countries and regions.

With the theme "Financial Reform and Steady Development from a Global Perspective," the Lujiazui Forum 2017 drew many heavyweight attendees from home and abroad, including central bank governors, financial regulators and economists.