China launches international payment system

currency_1

Oct 08, 2015 (LBO) – China’s central bank on Thursday launched the first phase of the China International Payment System in a bid to open their currency to the rest of the world.

With the new system businesses will facilitate cross boarder yuan transactions while increasing the efficiency and its global usage, China Central Bank said.

New system enables participants outside China to clear yuan transactions with their Chinese counterparts directly.

Earlier, cross-border yuan clearing had to be done through one of the offshore yuan clearing banks or through the corresponding bank in China.