the success of China's CIPS ,another challenge to USA's economical hegemony?

[badguy2000]

does Anyone notice that CHina has finished CIPS（Cross-border Interbank Payment System）? it is one international trade currency-settlement system parallel to SWIFT controlled by USA.

With CIPS, the transnational remittance can avoid being monitored/blocked by USA and its inteligence agency. it provides people an alternative to SWIFT, which in fact is controlled/monitored by USA.

In Semptember,some main banks all over the world started to use CIPS as their main cross-boder payment tool of RMB .

Frankly speaking, CIPS as well as AIIB ,is one milestone how USA's economical hegemony is collpasing in the front of rising China's economy might..

in a long run,the meaning of CIPS is much more important than TPP so called,because it means that USA could not block/monitor transnational fund remittance as easily as today now,without the cooperation of CIPS controlled by CHina.

BTW,
the emerging CHina is indeed an unprecedented challenger to USA, which is completely different from German,Soviet and Japan.

when German,Soviet and Japan were at the peak of their power, their industry output was all still less than 70% of USA ,their international trades were also much less than USA's.

However, China's industry output was already 140%+ of USA's in 2014,and its trade was also larger than USA's too.
in fact,CHina now produces/consumes almost all kinds of industry/aigriculture/mining/construction products than USA,front chips to ships, from food to electricity, from autos to box office
.CHina produced/consumed more concrete during 2008-2014 than USA did during the last century.

After industry revolution, the global hegemony has been always overtaken by the global largest industry-outputer sooner or later. At first it was UK, then USA.....
would CHina be the exception?

 

[TaiShang]

Anyone notice that CHina has finished CIPS（Cross-border Interbank Payment System）, one international trade currency-settlement system parallel to SWIFT controlled by USA.
With CIPS, the transnational remittance can avoide be monitored/blocked by USA and its inteligence agency.

In Semptember,some main banks all over the world started to use CIPS as their main RMB settlement tool .

Frankly speaking, CIPS as well as AIIB ,is one milestone how China is undermining quietly USA's economical hegemony.

in a long rum,the meaning of CIPS is much more important than TPP so called,because it means that USA could not block/monitor transnational fund remittance as easily as today now,without the cooperation of CIPS controlled by CHina.

Exactly. @Beidou2020 has shared excellent analyses on this issue on the board.

Great progress for China to reinforce financial sovereignty and security.

 

[Bratva]

Don't be a US slave.We will control and check it instead of USA.

So it will be monitored after all ! OP said it wont be monitored. Either he tells the truth or stop being hypocrite at all

 

[TaiShang]

Don't be a US slave.We will control and check it instead of USA.

Let Indian be Indian. If you engage the Indian, you will feel you go nowhere.

***

China's international yuan payment system pursues world finance


China's central bank on Thursday launched a global payment system in a major step to facilitate yuan clearing transactions, bolstering Beijing's quest to internationalise its currency and challenge the primacy of the dollar in world finance.

The cross-border interbank payment system, known as China International Payment System (CIPS), will remove one of the biggest hurdles to boosting yuan liquidity globally by cutting transaction costs and processing times.

The CIPS will be used to support cross-border goods and services trade settlement, direct investment, as well as financing and individual fund transfers, the People's Bank of China (PBOC) said in a statement.

A total of 19 banks have been selected to participant in CIPS, eight of which are Chinese subsidiaries of foreign banks, including Citi, Deutsche Bank, HSBC and ANZ.

The announcement confirmed a Reuters report in March.

The new system will put the yuan on a more even footing with other major globalcurrencies like the dollar - CIPS is expected to use the same messaging format as other international payment systems - and helping to promote the currency in global trade where the dollar reigns supreme.

It will also raise the global profile of the yuan as the International Monetary Fund considers whether to grant it elite status as a reserve currency, alongside the dollar, sterling, euro and yen.

"Because of the fast growth of cross-border RMB businesses, there is increasing demand for an international RMB clearing platform that adopts global market standards and offers efficiency in terms of trading time and language as well as risk and liquidity management," said Helen Wong, HSBC's Greater China Chief Executive.

"We believe CIPS will meet that demand, boosting RMB use worldwide and paving the way for China's currency to become truly global," Wong added.

China's yuan became the fourth most-used world payment currency in August, overtaking the Japanese Yen, global transaction services organisation SWIFT said on Tuesday.

Daily operating hours of the system will be 9:00-20:00 local time and the central bank will consider extending it in future depending on market demand, the PBOC said in its statement.

Standard Chartered Bank (China) Limited said it had completed a yuan clearing transaction for Sweden's IKEA through the CIPS, the first such deal to be announced hours after Beijing launched the worldwide system.

China Industrial and Commercial Bank Singapore also announced on Thursday that it had completed a trade settlement payment worth 35 million yuan ($5.51 million) from Singapore's Raffemet Pte Ltd to Baosteel Resources in Shanghai through CIPS.

Before CIPS was launched, cross-border yuan clearing had to be done either through one of the offshore yuan clearing banks in the likes of Hong Kong, Singapore and London, or else with the help of a correspondent bank in mainland China.



($1 = 6.3501 Chinese yuan renminbi)

 

[EAsian]

So it will be monitored after all ! OP said it wont be monitored. Either he tells the truth or stop being hypocrite at all

Of course it will be monitored.OP never said it won't.What hypocrite?

 

[Jacob Martin]

Don't be a US slave.We will control and check it instead of USA.

But seriously, it was never about being a US slave. I do understand that unilateral American control over financial transactions is problematic. But a free-for-all financial transfer system will benefit whom, exactly? Those looking to escape government scrutiny. You may use the instance of countries that suffer from unjust sactions, but for every Cuba, there is a North Korea.

What does Chinese monitoring mean, exactly? Will it monitor and block transfers of money from/to non-state actors detrimental to its competitors? I guess not.

 

[Shotgunner51]

does Anyone notice that CHina has finished CIPS（Cross-border Interbank Payment System）? it is one international trade currency-settlement system parallel to SWIFT controlled by USA.

With CIPS, the transnational remittance can avoid being monitored/blocked by USA and its inteligence agency. it provides people an alternative to SWIFT, which in fact is controlled/monitored by USA.

In Semptember,some main banks all over the world started to use CIPS as their main cross-boder payment tool of RMB .

Frankly speaking, CIPS as well as AIIB ,is one milestone how China is undermining quietly USA's economical hegemony.

in a long rum,the meaning of CIPS is much more important than TPP so called,because it means that USA could not block/monitor transnational fund remittance as easily as today now,without the cooperation of CIPS controlled by CHina.

Excellent!

Standard Chartered says has completed yuan clearing for Sweden's IKEA via CIPS - Yahoo Finance

Standard Chartered Bank (China) Limited said on Thursday it had completed a yuan clearing transaction for Sweden's IKEA through the China International Payment System (CIPS), the first such deal to be announced hours after Beijing launched the worldwide system.
The bank said it had finished the transaction from China to Luxembourg for the Swedish home furnishing retailer, noting it was the bank's first international yuan direct clearing via CIPS.

China's central bank earlier on Thursday launched the worldwide payment superhighway to encourage greater use of the yuan for trade settlement and investment, confirming an earlier Reuters report.

"Direct international RMB payment clearing via Standard Chartered enables a simpler payment route and enhances IKEA's liquidity management," said Lena Li, Treasury manager at IKEA China.

Before the new system was launched, cross-border yuan clearing had to be done either through one of the offshore yuan clearing banks in the likes of Hong Kong, Singapore and London, or else with the help of a correspondent bank in mainland China.

The launch of CIPS will remove one of the biggest hurdles to internationalizing the yuan and should greatly increase global usage of the Chinese currency by cutting transaction costs and processing times.

"CIPS will enhance China's connectivity with the global financial system, providing a highly efficient platform for cross-border RMB settlement," said Michael Vrontamitis, head of Trade at Standard Chartered Bank.

 

[TaiShang]

China launches CIPS clearing platform and banks quick to enact business - Trade & Export finance

 

[badguy2000]

I understand that the Chinese would be interested in using it. But globally, who else, apart from terrorists, money launderers, and rogue regimes will use it?

It depends on how important RMB is to international trade/finance,because CIPS is always the primary one for RMB transnational bisiness.
It can save cost and time for RMB business.
As long as china is global largest trader,the demand of RMB would grow steadily ,so will the users of CIPS.

 

[somebozo]

does Anyone notice that CHina has finished CIPS（Cross-border Interbank Payment System）? it is one international trade currency-settlement system parallel to SWIFT controlled by USA.

With CIPS, the transnational remittance can avoid being monitored/blocked by USA and its inteligence agency. it provides people an alternative to SWIFT, which in fact is controlled/monitored by USA.

In Semptember,some main banks all over the world started to use CIPS as their main cross-boder payment tool of RMB .

Frankly speaking, CIPS as well as AIIB ,is one milestone how China is undermining quietly USA's economical hegemony.

in a long rum,the meaning of CIPS is much more important than TPP so called,because it means that USA could not block/monitor transnational fund remittance as easily as today now,without the cooperation of CIPS controlled by CHina.

No nation can attain freedom without liberating its financing..what made Germany a super power in seven years was breaking away from corrupt international financial system being used as a weapon against it...Global financial system also doubles as a global economical weapon and attaining independence is important.

Russia is learning a hard lesson after being slapped with sanctions by West.

 

[Jacob Martin]

It depends on how important RMB is to international trade/finance,because CIPS is always the primary one for RMB transnational bisiness.
It can save cost and time for RMB business.
As long as china is global largest trader,the demand of RMB would grow steadily ,so will the users of CIPS.

Look, I think you could have a point about foreign trade. But how many countries pay for Chinese imports in RMB? Although I do understand what you are proposing. For any country that trades extensively with China, it would be a tempting offer to trade in RMB. Would the Chinese be willing to make special offers to make it a sweeter deal? Hell, if you guys do so then I think even India should opt for it!

 

[somsak]

Look, I think you could have a point about foreign trade. But how many countries pay for Chinese imports in RMB? Although I do understand what you are proposing. For any country that trades extensively with China, it would be a tempting offer to trade in RMB. Would the Chinese be willing to make special offers to make it a sweeter deal? Hell, if you guys do so then I think even India should opt for it!

sanctioned Iran.

 

[Genesis]

Look, I think you could have a point about foreign trade. But how many countries pay for Chinese imports in RMB? Although I do understand what you are proposing. For any country that trades extensively with China, it would be a tempting offer to trade in RMB. Would the Chinese be willing to make special offers to make it a sweeter deal? Hell, if you guys do so then I think even India should opt for it!

Over 100, 4th most used currency in the world, behind US, Euro, Pound Frickin Sterling.

So if you ask me, I would say, nobody, but that's just one man's opinion.

 

[Jacob Martin]

Over 100, 4th most used currency in the world, behind US, Euro, Pound Frickin Sterling.

So if you ask me, I would say, nobody, but that's just one man's opinion.

But why do they pay in RMB? Normally countries ask for payment in USD/Euro because they want to build their forex reserves. Does China offer any incentives for payment in RMB? One incentive I can see is that the RMB has been undervalued for a long while so it is attractive to pay in, works out cheaper.

 

[Genesis]

But why do they pay in RMB? Normally countries ask for payment in USD/Euro because they want to build their forex reserves. Does China offer any incentives for payment in RMB? One incentive I can see is that the RMB has been undervalued for a long while so it is attractive to pay in, works out cheaper.

China is looking to get into the special drawing right basket, we been signing deals with countries for currency exchange all over.

I don't know the particulars, I'm not an expert in this field, but as a civilian, it cost 2% to convert currency usually. China being the biggest trading nation, paying in our currency would be a major plus.

You statement reflex the current perceptions held by people. Untrue, but still prevalent. China is now the undisputed second most powerful economic power in the world. We just passed Japan in Asia investments, and much more has already been achieved or on the cusp of being achieved.