Standard Bank is the first authorised African bank to offer transactions through China’s Cross-Border Interbank Payment System (CIPS).
Lesetja Kganyago, Governor of the South African Reserve Bank (SARB) was joined at the ceremony held at the bank’s headquarters, in Pretoria, by Pan Gongsheng, Governor of the People’s Bank of China (PBOC) and Wang Hongbo, Chairman of the CIPS.
The two Governors emphasized the importance of the system for future payment transactions between commercial entities in both countries.
The payment system allows for interbank payments between Africa and China, using Chinese Renminbi (RMB) as the underpinning currency.
Access to CIPS will provide banks and financial institutions the ability to clear and settle cross-border payments without the need to use different currencies.
Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate & Investment Banking, said on Friday, “we are keen advocates for Africa’s growth, and this new service is tailored to provide solutions that meet our clients’ needs where they operate. CIPS will enable more integration with a key trading partner and offer our clients diverse options for optimising their operations.”
After the license was granted to offer CIPS transactions in June at the Lujiazui Forum in Shanghai, the system has since gone live.
Picture: Supplied