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12 April 2022

Why China’s CIPS Matters (and Not for the Reasons You Think)

Emily Jin

Payment systems are the plumbing of international finance. As the U.S. and its allies block Russia from a major part of global financial plumbing, China’s Cross-Border Interbank Payment System (CIPS) has been receiving increasing attention. Many observers have wondered whether CIPS and other Chinese channels could provide a replacement not just for trade with China but also for transactions with other countries. For now, this looks like a stretch. But over the long term, participation in CIPS might be an indicator of China’s growing financial power.

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