Standard Bank of South Africa has become the first financial institution on the continent to achieve direct integration with China’s Cross-Border Interbank Payment System.

This landmark integration marks a decisive shift away from traditional dollar-dominated settlement channels and positions Africa to capture greater efficiency and autonomy in its booming trade with the world’s second-largest economy.

The newly activated system enables African businesses within Standard Bank’s network to settle payments with Chinese suppliers directly in yuan, eliminating the need to first convert funds through the US dollar.

Standard Bank secured its formal approval to offer these CIPS services in June 2025 at the prestigious Lujiazui Forum in Shanghai, a key platform for international financial policy.

The integration was officially inaugurated at a ceremony hosted by the South African Reserve Bank, attended by Governor Lesetja Kganyago alongside senior representatives from the People’s Bank of China and CIPS.

The development underscores growing financial collaboration between Africa’s largest bank and China’s rapidly expanding global payments network.

Standard Bank said that direct access to CIPS will streamline cross-border transactions by reducing currency conversion steps, lowering costs, and minimizing settlement delays that frequently affect dollar-based payments.

The Head of Client Coverage at Standard Bank Corporate and Investment Banking,
Crosby Mkhwanazi, said, “We are keen advocates for Africa’s growth, and this new service is tailored to provide solutions that meet our clients’ needs where they operate. The system will enable more integration with a key trading partner and offer our clients diverse options for optimizing their operations.”

The bank highlighted that the new system will also help African importers mitigate exposure to dollar exchange rate fluctuations, particularly for goods such as machinery, electronics, textiles, and construction materials from China. Standard Bank added that the service offers clients new opportunities to streamline and optimise their trade operations with the Chinese market.

Standard Bank’s integration with CIPS highlights a broader realignment in Africa, as trade patterns shift and new geopolitical and economic blocs take shape.

African nations are increasingly exploring alternative currencies that align with their expanding trade with China.

The initiative also aligns with the broader goals of the expanded BRICS group, including South Africa, to encourage local currency settlements and reduce reliance on the US-dominated financial system.