Kyrgyzstan is exploring the possibility of connecting its state-owned banks to China’s Cross-border Interbank Payment System (CIPS), a Chinese alternative to the SWIFT payment network, according to the country’s central bank press service.
The development emerged from high-level financial talks held in Beijing on June 3, where Kyrgyzstan’s National Bank Governor Melis Turgumbayev and Finance Minister Almaz-Baketayev met with Chinese Finance Minister Lan Fo’an. The meeting was conducted within the framework of deepening financial and economic cooperation between the two nations.
The central focus of discussions centered on developing cross-border payment infrastructure and strengthening settlement and banking connections between Kyrgyzstan and China. Both sides emphasized the strategic importance of establishing direct and stable interaction channels between their financial institutions.
Key initiatives discussed included integrating Kyrgyzstan’s state banks into China’s CIPS system and opening correspondent accounts for Kyrgyz banks at authorized Chinese financial institutions. These measures aim to facilitate smoother bilateral financial transactions and reduce dependency on traditional Western payment systems.
CIPS, developed by the People’s Bank of China, serves as China’s cross-border interbank payment system primarily designed for cross-border yuan settlements. The system has gained prominence as an alternative to SWIFT, particularly as countries seek to diversify their international payment mechanisms amid evolving global financial dynamics.
This potential integration represents a significant step in Sino-Kyrgyz financial cooperation and aligns with China’s broader Belt and Road Initiative objectives in Central Asia. For Kyrgyzstan, joining CIPS could enhance trade efficiency with China, its major economic partner, while providing alternative channels for international transactions beyond traditional Western-dominated systems.
Source: Sputnik News, June 4, 2025
https://sputniknews.cn/20250604/1065821024.html