BRICS Payment System Expands Yuan Transactions Globally, Bypassing Traditional Financial Channels

China's Cross-Border Interbank Payments System (CIPS) now facilitates yuan-denominated transactions across 185 countries, marking a seismic shift in global trade finance. The system processed 52 trillion yuan in 2023—capturing 58% of China's cross-border flows—as Beijing aggressively promotes alternatives to dollar-dominated settlements.

Shanghai's Oil and Gas Exchange recently executed its first yuan-based liquefied natural gas trades, while Shenzhen's Qianhai center now handles soybean transactions in local currency. Nearly all trade between China and Russia has settled in national currencies since 2021, demonstrating the system's geopolitical traction.

Adoption remains bifurcated along economic lines. While 40 nations including BRICS partners have embraced CIPS, developed economies in North America and Europe continue sidelining the mechanism. The system finds strongest uptake across Africa, Asia, and Eastern Europe—regions historically constrained by dollar liquidity.