Why East African banks are joining yuan payment system
Chinese yuan notes. With China being Africa’s largest export market, the China’s Cross-Border Interbank Payment System will simplify and accelerate the clearance of transactions between the two markets.
Bank of Kigali is the latest East African lender to join China’s Cross-Border Interbank Payment System (CIPS), enabling faster and more direct cross-border payments in renminbi.
By bypassing the traditional US dollar-centric correspondent banking networks and intermediate dollar conversions, this integration allows importers to clear trade invoices directly in yuan, with the shift slashing transaction costs and reducing processing times from several business days to near-instantaneous settlement.
