RMB cross-border payment system (CIPS) officially launched：

The internationalization of the RMB has accelerated. Yesterday, the central bank announced that the RMB cross-border payment system (CIPS) (Phase I) was officially launched, providing fund clearing and settlement services for domestic and foreign financial institutions' RMB cross-border and offshore businesses.The first batch of direct participation institutions included 19 domestic and foreign banks. At 9 o'clock yesterday morning, the Bank of China Sydney Branch took the lead to remit the Australian company's 37.084 million yuan to the territory through the CIPS system, successfully handling the first business.Prior to this, the central bank adopted an authorized way to establish a RMB clearing bank around the world. The local RMB cross-border business must access the central bank's RMB clearing system through the local clearing bank designated by the central bank.The completion and operation of the CIPS system is an important milestone in the internationalization of China's RMB. Fan Yifei, deputy governor of the People's Bank of China, said at the launching ceremony of the first phase of CIPS that the completion and operation of the CIPS system is conducive to improving the efficiency of cross-border settlement of RMB and promoting the use of the renminbi on a global scale better supports the development of the real economy and the implementation of the “going out” strategy.The first batch of CIPS direct participation institutions included 19 domestic and foreign banks including ICBC, Agricultural Bank, Bank of China, China Construction Bank and Bank of Communications.The CIPS system, which was started in early 2012, is divided into two phases: the first phase mainly uses real-time full-rate settlement to provide clearing and settlement services for cross-border trade, cross-border investment and financing, and other cross-border RMB businesses;
The second phase will adopt a more liquidity-based mixed settlement method to improve the liquidation and settlement efficiency of RMB cross-border and offshore funds.