Chinese International Payment System ready for autumn roll-out

The Chinese International Payment System (CIPS) that will enable the  processing of  cross-border yuan transactions is ready, and may be launched as early as September or October, Reuters is reporting. The launch of CIPS  would remove one of the biggest hurdles to the  internationalisation of the yuan and should greatly increase its global usage by cutting both transaction costs and processing times. It will also put the yuan on a more even footing with other global currencies, as CIPS is expected to use the same messaging format as other international payment systems, making transactions smoother. “The CIPS is ready now and China has selected 20 banks to do the testing, among which 13 banks are Chinese banks and the rest are subsidiaries of foreign banks,” said a senior banking source told the international news agency. “If it’s all smooth, (the launch) will be in September or October. If there is a need for a bit more time, we are still confident about (rolling it out) before the year-end.”