China Starts Cross-Border Yuan Payment System to Bolster Usage
- Some 19 banks are directly participating including ICBC, HSBC
- Move comes as China seeks to be added to IMF's SDR basket
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China has started a payment system for cross-border yuan transactions, part of the nation’s plan to bolster the currency’s global usage and win reserve status from the International Monetary Fund.
The People’s Bank of China on Thursday initiated the first phase of the China International Payment System, which provides clearing and settlement services, it said in a statement on its website. Some 19 lenders including Industrial & Commercial Bank of China Ltd. and HSBC Holdings Plc’s subsidiary in China are directly participating, the PBOC said.