It is undeniable that the use of renminbi for payments and transactions worldwide is growing. According to the latest data from financial messaging provider Swift, the renminbi is now the world’s fifth most popular currency for payments. And now that the International Monetary Fund has included the renminbi in its special drawing rights basket, usage could increase further.
As the currency has become more internationalised, so Chinese regulators have had to provide the infrastructure to settle and coordinate cross-border renminbi payments. Hence the establishment in 2015 of the Cross-border Inter-Bank Payment System (CIPS), China’s renminbi payments and settlement system.
