CIPS vs. SWIFT: China Increases Yuan Transactions, Including Through Africa

The Central Bank of Libya and the People's Bank of China have reached an agreement to connect Libyan commercial banks to the China Cross-Border Interbank Payment System (CIPS). The agreement was reached during talks in Beijing between Libyan Central Bank Governor Naji Mohamed Isa and PRC Governor Pan Gongsheng.

Connection to CIPS will allow Libyan financial institutions to conduct direct cross-border transfers in yuan, bypassing dollar channels and third-party intermediaries. According to the state-run Libyan News Agency, this will simplify commercial transactions, speed up transfers, and increase trade flows.

This demonstrates China's consistent, albeit problematic, efforts to expand the use of the yuan in international trade, offering CIPS as an alternative to the SWIFT system. According to SWIFT, the yuan's share of international payments in June 2026 was 3,1%, allowing the Chinese currency to return to fifth place in the global ranking. For comparison, this figure stood at 2,85% in April 2026. In earlier periods, the yuan's share reached 4,7% (2024). But that's SWIFT. Overall, the yuan's share of global trade (including systems that SWIFT is incapable of accounting for) reaches 15-17%.

The US dollar, however, remains dominant: in June 2026, it accounted for 50,10% of all global payments via SWIFT. The euro is second with 21,88%, the British pound is third (6,71%), and the Japanese yen is fourth (3,66%). But again, this is exclusively for SWIFT. Overall, the dollar's share is approximately 36%, which is significantly higher than the Chinese yuan's.

In addition to Libya, the African Export-Import Bank and South Africa's Standard Bank have already joined CIPS. African countries (including Libya, the Central African Republic, and others) also plan to tap into the Chinese capital market by issuing so-called "panda bonds"—yuan-denominated debt securities that could help finance Libya's reconstruction after years of conflict.

Comments

[RUSSR]

The only thing better than a dollar is gold.

[Ovsigovets]

There is nothing more permanent than the temporary and nothing in this world is permanent... for now, yes.

[APASUS]

Quote: RUSSR

The only thing better than a dollar is gold.

The dollar is simply becoming a risky asset. I don't think it will disappear completely, but it could easily lose 70 percent of its value. But there are plenty of options for liquid assets, from titanium and rare earth metals to armored steel.

[balabol]

The Central Bank of Libya and the People's Bank of China have reached an agreement to connect Libyan commercial banks to the China Cross-Border Interbank Payment System (CIPS). The name sums up all the system's features. China, under the control of its central bank, organizes payments for its goods through its commercial banks with branches in foreign countries. Foreign banks can act as second-tier clients, working with Chinese bank branches in their countries of presence. This is not a global system for confirming transfers, but rather a way to simplify the sale of Chinese goods, and is primarily of interest to China and its trading partners.

[pudelartemon]

offering CIPS as an alternative to the SWIFT system.

A very bold statement. There can be no alternative.
SWIFT is an international data transmission network for more than 11,000 banks worldwide, and CIPS (Cross-border Interbank Payment System) is a payment and settlement system focused on Chinese currency.

[ANB]

. focused on the Chinese currency.

Considering that everywhere you look, everything is made in China, it's quite useful. I'll toss out the idea of ​​integrating it at work.

[balabol]

Dear Andrey Belousov, if you have any results, please share the information. The cost of transfers should be lower, but how convenient is it to work with accredited banks and the yuan conversion conditions?

[balabol]

Some experts in the international banking system disagree with you. They're desperately downvoting you without providing any evidence. For them, the international payment system and cross-border transactions are indistinguishable.

[pudelartemon]

Yeah, right. Most people consider themselves experts in three fields: history, medicine, and economics, knowing a thing or two about them from hearsay. Including the author of this article.

[balabol]

They forgot the geniuses of tactics and strategy who knew how to win always and everywhere.

[pudelartemon]

I confess, I forgot
(I don't consider this message short)

[Jacques sekavar]

China's economy is growing by 5% and remains the largest in the world. Foreign trade turnover is growing by more than 3%, including 5,4% with the EU, and the surplus for 25 was a record high, reaching 1,2 trillion. With such revenue, China is increasing funding for numerous programs around the world, including third-world governments, which are only too happy about this, given the US's debt problems and sanctions policies, such as 500% tariffs, which have led to a more than 18% decline in trade with China. And who is worse off? China has a full range of alternative institutions for servicing foreign trade transactions and can use them at any time if necessary, and everyone understands this perfectly well. But as long as China feels comfortable within the existing world order, it has no reason to upend the one built by the US.

[Brturin]

Quote: Jacques Sekavar

The PRC has a full range of alternative institutions for servicing foreign trade operations.

alternative institutions are one of the main pillars of the world's exchanges - the New York Stock Exchange for oil, the Chicago Stock Exchange for agricultural commodities (the London Stock Exchange for metals) - world prices are based on them - an exchange serving the domestic market is one thing, and a world market is another... China, like the United States, is the largest consumer of oil - so the oil yuan is quite possible, but with the rest

[snow mountain]

Quote: ANB

Considering that wherever you look, everything is made in China, it’s a very useful thing.

And probably effective for those who deal with international payments.

[Svarog5570]

China is quietly expanding its areas of presence, first goods and investments, now interbank transfers, slowly but surely displacing the dollar.

[Salimi from Iran]

I believe that the situation that has developed in Africa is actually a Western ploy to prevent Russia from attacking Donbass and China from attacking Taiwan; some kind of diversionary maneuver or something like that.

[KCA]

Russia has been connected to CIPS for four years now.