SWIFT and the China International Payment Service (CIPS) have signed a memorandum of understanding (MOU) setting out their collaboration on China's cross-border interbank payment system. CIPS will use the SWIFT network to connect CIPS with international banks and it hopes this will propel the renminbi further as a global currency.

The MOU was signed in Beijing on 25 March 2016. CIPS executive director, Li Wei, said: “We aim to provide an inclusive platform to capture cross-border RMB flows to all types of participants, which will significantly extend the reach of RMB internationalisation.”

In a statement SWIFT noted that, to date, 1,700 financial institutions have made RMB transactions using the SWIFT network. SWIFT has operated in China for over 30 years and nearly 400 Chinese financial institutions and corporations are connected to SWIFT today.