The world’s leading provider of secure financial messaging services – SWIFT – published an announcement on Friday about signing of a memorandum of understanding (MoU) with China International Payment Service Corp., (CIPS Co.).
The MoU provides specifications of the strategic co-operation for developing China’s Cross-border Interbank Payment System (CIPS) leveraging SWIFT as a channel to connect CIPS with SWIFT’s global user community.
The MoU was signed by Alain Raes, SWIFT Chief Executive of Asia Pacific and EMEA, and CIPS Executive Director, Li Wei signed the MOU in Beijing on March 25, 2016.
As Li stated,
“China International Payment Service Corp. is looking forward to benefitting from SWIFT’s platform and services to provide an efficient and convenient channel to the global financial community. We aim to provide an inclusive platform to capture cross-border RMB flows to all types of participants which will significantly extend the reach of RMB internationalisation”.
Raes added,
“SWIFT is a global messaging provider supporting more than 150 payment and settlement systems, and CIPS is a payment system. There are natural synergies between global financial messaging services, such those provided by SWIFT, and payment systems. Working with such market infrastructures is at the heart of our business”.
SWIFT is a member-owned cooperative with more than 11,000 financial institutions in more than 200 countries. Currently, 1,700 financial institutions have made RMB transactions via the SWIFT network. The company has operated in China for more than 30 years and nearly 400 Chinese financial institutions and corporations are connected to the company today.
According to the latest SWIFT RMB Tracker, the Chinese currency stayed at #5 in the ranking of world payments currencies in January 2016. The RMB accounted for 2.45% of global payments in January, up from a share of 2.31% in December 2015.
The official announcement on the MoU between SWIFT and CIPS can be seen here.
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