ANZ uses China’s CIPS for first transaction

Yuan

ANZ China has completed its first transaction using China’s Cross-Border Interbank Payment System (CIPS), launched on Thursday by the People’s Bank of China (PBoC).

ANZ was selected as one of 19 Chinese and locally incorporated foreign banks able to directly participate in CIPS Phase I.

The PBoC said that CIPS’ first phase would support cross-border goods and services trade settlement, cross-border direct investment, cross-border financing and cross-border individual fund transfers.

“The renminbi [RMB] is already the second most used cross-border payment currency in China and the fourth global payment currency,” said ANZ China chief executive (CEO) and head of Greater China, Huang Xiaoguang. “The launch of CIPS is another major milestone for the RMB’s internationalisation, levelling the playing field for the RMB and other major global currencies for payment transactions.”

The bank added that CIPS is expected to improve RMB clearing and settlement standards in China, aligning with international practice and processes and allowing for higher compatibility.

The first batch of CIPS direct participating institutions includes 19 domestic and foreign financial institutions, including ANZ (China). Meanwhile, indirect participants include 38 domestic banks and 138 offshore banks.

“As the only Australian bank with both local and foreign currency capabilities in Retail and Corporate banking in Mainland China, ANZ China is well-positioned to support customers’ increasing financial needs and growing business opportunities across the country,” said ANZ, which entered China in 1986 and now has seven branches, four sub-branches and an operations hub in Chengdu.

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