Kyrgyzstan and China discuss connecting state banks to CIPS payment system

The possibility of connecting state banks to the Cross-Border Interbank Payment System (CIPS) was discussed in Beijing by Melis Turgunbaev, Chairman of the National Bank of Kyrgyzstan, Almaz Baketaev, Minister of Finance, and Lan Fo’an, Minister of Finance of the People’s Republic of China. The head of the National Bank of Kyrgyzstan reported on Facebook.

According to him, the parties discussed expanding financial and economic cooperation, including the creation of modern infrastructure for cross-border settlements and deepening interbank cooperation. Among the key topics were connecting Kyrgyzstan’s state banks to the CIPS system, as well as the possibility of opening correspondent accounts in authorized banks in China.

Such infrastructure will simplify settlement procedures, reduce transaction costs, and create additional conditions for the development of trade and investment between the two countries. In addition, it will allow for the diversification of financial instruments and strengthen the independent financial system of the Kyrgyz Republic.

Cross-Border Interbank Payment System is a Chinese international interbank settlement system designed for cross-border payments in yuan. It is positioned as an alternative to SWIFT as part of the expansion of the international use of the yuan.