China has added six new financial institutions from Africa, the Gulf, and Central Asia to its Cross-border Interbank Payment System (CIPS), accelerating its push to internationalize the yuan and reduce reliance on the U.S. dollar.
The African Export-Import Bank, First Abu Dhabi Bank, Standard Bank, United Overseas Bank, Eldik Bank, and Chongwa Exchange have joined as direct participants, enabling them to independently process cross-border yuan transactions bypassing the intermediaries.
This expansion is part of China’s broader strategic effort to build parallel financial infrastructure and reduce exposure to Western-led systems like SWIFT. It aligns with ongoing shifts in the global financial architecture, as countries seek greater monetary autonomy and diversification.
CIPS, launched in 2015, now has 174 direct members including major global banks. The system is increasingly favored by nations exploring de-dollarisation.
China’s ability to promote the yuan globally also hinges on the pace and depth of current account convertibility (already largely achieved) and the gradual liberalization of its capital account, which remains partially restricted. Controlled opening of the capital account could further enhance the yuan’s role as a reserve and settlement currency in global trade.
As the global financial order shifts, countries are rapidly advancing de-dollarisation strategies, with groupings like BRICS promoting alternative systems to counterbalance U.S.-centric dominance.
Is this the beginning of a truly multipolar financial world?
Views are welcome.
𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: This article has references to official and open sources, including Business Insider Africa.
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