Standard Bank first with China’s interbank system

by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – STANDARD Bank is the first authorised bank to offer transactions through China’s cross-border interbank payment system (CIPS).

The biggest bank in Africa by assets, it was granted license to offer CIPS transactions in June at the Lujiazui Forum in Shanghai.

The system has now gone live, after the recent inauguration at a ceremony held at the South African Reserve Bank (SARB).
The payment system allows for interbank payments between Africa and China using Chinese Renminbi (RMB) as the underpinning currency.

Access to CIPS will provide banks and financial institutions the ability to clear and settle cross-border payments without the need to use different currencies.

“We are keen advocates for Africa’s growth,” said Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking.

“This new service is tailored to provide solutions that meet our clients’ needs where they operate. CIPS will enable more integration with a key trading partner and offer our clients diverse options for optimising their operations.”

According to Standard Bank’s Trade Barometer 2024, 34 percent of surveyed businesses source their imports from China in contrast to 23 percent of the businesses surveyed in May 2023.

China is Africa’s largest export market, hence it is expected the new payment system will simplify and accelerate the clearance of transactions between the two markets.

“We are confident in the exciting and continued evolution of the payments environment,” Mkhwanazi said.

– CAJ News