Faith Nyasuguta
China is ramping up efforts to challenge U.S. dominance in the global financial system by expanding its cross-border yuan payment platform. In a bold move, six more financial institutions from Africa, the Gulf, Central Asia, and Southeast Asia have officially joined the Cross-border Interbank Payment System (CIPS), reinforcing China’s strategy to internationalize its currency and reduce dependence on the U.S. dollar.
According to the South China Morning Post, the newest direct participants include the African Export-Import Bank, South Africa’s Standard Bank, First Abu Dhabi Bank, Singapore’s United Overseas Bank, Eldik Bank of Kyrgyzstan, and Chongwa (Macau) Financial Asset Exchange. A formal induction ceremony took place last week in Shanghai.
By becoming direct participants, these banks can now independently process cross-border yuan transactions without relying on intermediaries. This differs significantly from indirect participants, who must route payments through direct members, thus giving these six new institutions more autonomy and efficiency in yuan-based transactions.
This strategic expansion is part of Beijing’s broader goal to reshape the global financial architecture. As tensions between China and the United States continue to escalate, especially over sanctions and trade restrictions, China is positioning the yuan as a viable global alternative to the dollar. The inclusion of major financial institutions from non-Western regions reflects a shifting tide in global finance – one increasingly characterized by regional alliances and multipolar economic networks.
The development also complements parallel efforts by countries like Russia and Iran, which are actively seeking to bypass Western-controlled financial systems such as SWIFT. These nations are exploring similar payment networks to protect their economies from sanctions and bolster trade with friendly states.
Launched in 2015, CIPS is China’s answer to SWIFT. While it started modestly, it has gained significant momentum. By May 2025, the system had 174 direct participants, including global financial heavyweights such as HSBC, JP Morgan, and Citibank. The recent expansion signals that China’s influence in global payments is no longer confined to its immediate neighborhood.
For African, Gulf, and Central Asian countries, joining CIPS is not just a nod to China’s growing economic clout – it’s also a strategic hedge. These regions increasingly seek alternatives that offer more control, less risk of sanctions, and closer alignment with emerging economic powers.
With this latest move, China takes a significant step in narrowing the financial power gap with the U.S. and reshaping the global currency order.
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