The renminbi Cross-border Interbank Payment System, or CIPS, is widely said to play a critical role in supporting the internationalization of the Chinese currency, the renminbi, and the development of Shanghai's role as an international financial center.

CIPS serves as a primary channel for various RMB cross-border transactions, including trade, investment, and financial market activities. Trading house CIPS Co Ltd, established in Shanghai, takes full charge of the operations, maintenance, and development of CIPS.

As of the end of December 2024, CIPS had processed about 600 trillion yuan ($81.83 trillion) in various payment transactions. In 2024 alone, CIPS processed 175 trillion yuan in cross-border RMB payments, up 43 percent year-on-year.

Since its launch in October 2015, the financial market mechanism has continuously expanded its functions and enhanced its network coverage, facilitating the participation and management of the financial business of international investors in China.

Over the years, CIPS has established a global network system with Chinese banks and clearing banks as the backbone, supported by global systemically important banks (G-SIBs).

More than half of CIPS participants are outside China, covering business in 185 countries and regions through over 4,800 banking institutions.

Source: Shanghai Observer