BRICS Payment System Supports Transactions Across 185 Countries
BRICS member China’s new payment system, named Cross-Border Interbank Payments System (CIPS), is taking the financial world by storm. The CIPS payment system now supports international transactions in the Chinese yuan across 185 countries. China has enabled yuan-denominated trades for liquefied natural gas at the Shanghai Oil and Gas Exchange. In addition, the Communist country has allowed the Shenzhen Qianhai Joint Trading Center to handle overseas soybean transactions in the local currency. China has already signed agreements with 40 countries, including BRICS nations, to settle payments in the new CIPS system. As of 2023, settlements reached a high of 52 trillion yuan, representing 58% of the total cross-border flow. That’s a historic milestone that even surpassed the US dollar in various measures. For context, 95% of the trade between China and Russia has been settled in local currencies for the last three years. Also Read: BRICS Expands De-Dollarization: Chinese Yuan Le...