The Cross-border Interbank Payment System, or CIPS, launched its renminbi-denominated international letter of credit service at the 2025 China International Finance Exhibition on June 18.

A letter of credit is one of the most commonly used settlement tools in international trade. The new CIPS service enables standardized global information exchange for issuing, amending, dispatching, receiving, and closing letters of credit.

By adopting internationally recognized message formats, it supports smooth communication between banks and enterprises, significantly improving cross-border settlement efficiency and reducing communication costs.

CIPS signed agreements with six foreign banks — Bangkok Bank, Standard Bank, African Export-Import Bank, First Abu Dhabi Bank, Eldik Bank, and United Overseas Bank — at the event.

Their inclusion as direct participants marks the first time CIPS has had foreign members from Africa, the Middle East, Central Asia, and the Singapore offshore RMB center.

CIPS is the primary channel for RMB cross-border payments and clearing. By the end of May, it had 174 direct participants and 1,509 indirect participants, serving more than 4,900 licensed banking institutions across 187 countries and regions.

CIPS also signed an agreement with Chongwa (Macao) Financial Asset Exchange, aiming to increase its influence in Portuguese-speaking regions.

Source: Shanghai Observer