3Part of campaign to internationalize the RMB.
The China International Payment System will be set up and hosted in Shanghai next year. The new international payment system developed by the People's Bank of China, the central bank, is designed to make cross-border settlement in renminbi or RMB more efficient and to further boost the global profile of the Chinese currency.
The development and deployment of the right international payment infrastructure in Shanghai is important for the development of financial industry in the city. CIPS is also a vital development in international payment systems, which will work as a complementary facility to the current renminbi clearing services in offshore markets such as Hong Kong, Singapore and Taiwan.
PBOC announced the launch of CIPS in 2010 for cross-border RMB settlement. CIPS will be SWIFT-based and modeled on the U.S. CHIPS clearing, including integration with CNAPS modeled on Fedwire.
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