- China‘s Cross-Border Interbank Payments System (CIPS) supports yuan transactions in 185 countries.
- As of 2023, CIPS settlements reached 52 trillion yuan ($7.5 trillion), representing 58% of total cross-border yuan flows.
- China has enabled yuan-based trading for liquefied natural gas and soybeans through new domestic exchange platforms.
- About 40 countries, mostly developing nations, use CIPS; Europe, Australia, and North America have not adopted it.
- BRICS countries are encouraged to adopt CIPS to reduce US dollar dependence, though India remains hesitant.
China’s Cross-Border Interbank Payments System (CIPS) now enables international transactions in the Chinese yuan across 185 countries as of 2025. The payment system supports yuan-denominated trades globally to increase China’s financial influence and reduce reliance on the US dollar.
CIPS has seen a surge in settlement volume, reaching a record 52 trillion yuan ($7.5 trillion) in 2023, which represents 58% of the total yuan cross-border flow. For comparison, 95% of trade between China and Russia has been settled in local currencies over the last three years. Agreements to use CIPS for payments have been signed with 40 countries, including nations in the BRICS alliance.
China has expanded yuan-based trading by authorizing yuan payments for liquefied natural gas at the Shanghai Oil and Gas Exchange. Additionally, the Shenzhen Qianhai Joint Trading Center now handles overseas soybean transactions in local currency. These developments show China’s commitment to increasing the yuan’s role in international trade.
Despite growing adoption in Africa, Asia, and Eastern Europe, countries in Europe, Australia, and North America have largely avoided the CIPS system. Many of the nations using CIPS are developing or low-income countries and those involved in China’s Belt and Road Initiative (BRI), which often use CIPS for loan settlements.
China is promoting the CIPS platform among BRICS members to encourage yuan-denominated transactions, aiming to reduce dependence on the US dollar and boost local currencies. However, India remains cautious, expressing concerns that China would benefit most. The Indian government prefers to maintain strong ties with the United States and does not plan to reduce US dollar exposure. Currently, although 185 countries have access to CIPS, about 40 actively use it by 2025.
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