China's central bank (PBOC) on Oct 08 (Thursday) launched the Cross-border Interbank Payment System (CIPs), the Chinese international payment system to facilitate trade settlement and investment dominated in the yuan. As one of the first direct participants, Agricultural Bank of China also started clearing and settlement in yuan via CIPS on the same day. At 10:30 local time on Oct 08, Agricultural Bank of China, Frankfurt branch received the first payment of CNY17.30m from China via CIPS, which indicates the successful start of CIPS processing with Frankfurt branch.

CIPS, which described by the market as an "expressway" for global payment in yuan, is designed to provide services of cross-border clearing and payment for domestic and foreign financial institutions as direct or indirect participants. It is expected to effectively increase global usage of the currency by cutting transaction costs and processing times, meanwhile to support further development of the offshore yuan market and accelerate the internationalization of the yuan.

ABC Frankfurt branch will make the best use of CIPS so as to offer satisfactory clearing service to local customers in their cross-border payment.