Beijing (TDI): In a significant move aimed at simplifying trade and financial exchanges, Kyrgyzstan is laying the groundwork to link its banking system with China’s Cross-Border Interbank Payment System (CIPS), a key platform that allows international payments to be made in Chinese yuan.
The announcement followed a high-level meeting in Beijing where Kyrgyz Finance Minister Almaz Baketaev and Central Bank Chairman Melis Turghanbaev sat down with China’s Finance Minister Lan Fuan to explore ways of improving financial cooperation between the two nations.
One of the main goals discussed was creating a direct and stable channel for payments between Kyrgyz and Chinese banks, which would bypass the need for US dollars or other third-party currencies.
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This would make cross-border transactions cheaper, faster, and less vulnerable to external pressures.
“The aim is to reduce costs and increase security in our financial dealings with China,” a senior Kyrgyz official said, adding that the plan includes allowing Kyrgyz banks to open accounts in Chinese institutions and connect to the CIPS system.
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Baketaev reaffirmed his country’s commitment to maintaining a systematic dialogue with the People’s Bank of China and the National Financial Regulatory Administration.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
