Advanced search

Home > News > Luxembourg uses CIPS first >

Luxembourg uses CIPS first

Published Monday October 12 2015

Luxembourg uses CIPS first

Standard Chartered says has completed yuan clearing for Sweden's IKEA via CIPS

Standard Chartered Bank (China) Limited said on Thursday it had completed a yuan clearing transaction for Sweden's IKEA through the China International Payment System (CIPS), the first such deal to be announced hours after Beijing launched the worldwide system.

 The bank said it had finished the transaction from China to Luxembourg for the Swedish home furnishing retailer, noting it was the bank's first international yuan direct clearing via CIPS.

 China's central bank earlier on Thursday launched the worldwide payment superhighway to encourage greater use of the yuan for trade settlement and investment, confirming an earlier Reuters report.

 "Direct international RMB payment clearing via Standard Chartered enables a simpler payment route and enhances IKEA's liquidity management," said Lena Li, Treasury manager at IKEA China.

 Before the new system was launched, cross-border yuan clearing had to be done either through one of the offshore yuan clearing banks in the likes of Hong Kong, Singapore and London, or else with the help of a correspondent bank in mainland China.