BRICS: China Officially Launches Plan to Promote Its Own Payment System
BRICS member China officially rolled out a plan to promote its own payment system to replace SWIFT. The Communist country aims to reduce US dollar dependency to confront Washington’s aggressive stance on trade and tariffs. The new plan was jointly released by the Shanghai municipal government and the People’s Bank of China, the country’s central bank.
Also Read: BRICS: India Plays ‘Double Game’ With the US Dollar?
The new payment system from BRICS member China will incorporate the Chinese yuan through the Cross-Border Interbank Payment System (CIPS). China wants to leverage its dominance in the manufacturing and trade sector and push the Chinese yuan for settlements.
Also Read: Illinois Analyst Predicts If BRICS Currency Can Replace the US Dollar
BRICS: China Will Take on SWIFT Through CIPS Payment System
The BRICS country China revealed that it will “enhance the functionality” of CIPS and challenge the Western-dominated SWIFT payment system. “Promote the use of the renminbi in belt and road partner countries, and build a trade and investment service system based in Shanghai to facilitate the global circulation and use of the renminbi,” the plan stated.
Also Read: De-Dollarization Reaches European Shores: EU Questions US Dollar Usage
The plan also states that the Xi Jinping administration will strengthen financial support to Chinese enterprises “going global”. “Enabling all types of market players to engage in international competition and cooperation in a safer, more convenient and efficient manner,” read the report.
China will also allow other BRICS members to settle cross-border transactions without the US dollar in the new payment system. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Beijing is looking to internationalize the Chinese yuan and make it a common currency for trade among developing nations.
Settling cross-border transactions in the new payment system will not only strengthen the Chinese economy but also uplift the BRICS alliance. The development could cause harm to the US dollar as more countries will stop using it as a form of payment for trade.
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BRICS: China Officially Launches Plan to Promote Its Own Payment System
BRICS member China officially rolled out a plan to promote its own payment system to replace SWIFT. The Communist country aims to reduce US dollar dependency to confront Washington’s aggressive stance on trade and tariffs. The new plan was jointly released by the Shanghai municipal government and the People’s Bank of China, the country’s central bank.
Also Read: BRICS: India Plays ‘Double Game’ With the US Dollar?
The new payment system from BRICS member China will incorporate the Chinese yuan through the Cross-Border Interbank Payment System (CIPS). China wants to leverage its dominance in the manufacturing and trade sector and push the Chinese yuan for settlements.
Also Read: Illinois Analyst Predicts If BRICS Currency Can Replace the US Dollar
BRICS: China Will Take on SWIFT Through CIPS Payment System
The BRICS country China revealed that it will “enhance the functionality” of CIPS and challenge the Western-dominated SWIFT payment system. “Promote the use of the renminbi in belt and road partner countries, and build a trade and investment service system based in Shanghai to facilitate the global circulation and use of the renminbi,” the plan stated.
Also Read: De-Dollarization Reaches European Shores: EU Questions US Dollar Usage
The plan also states that the Xi Jinping administration will strengthen financial support to Chinese enterprises “going global”. “Enabling all types of market players to engage in international competition and cooperation in a safer, more convenient and efficient manner,” read the report.
China will also allow other BRICS members to settle cross-border transactions without the US dollar in the new payment system. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Beijing is looking to internationalize the Chinese yuan and make it a common currency for trade among developing nations.
Settling cross-border transactions in the new payment system will not only strengthen the Chinese economy but also uplift the BRICS alliance. The development could cause harm to the US dollar as more countries will stop using it as a form of payment for trade.
Read More