Caixin Summit: Yuan’s Global Use Gains Momentum, DBS China Chief Says
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Ginger Cheng, president and CEO of DBS Bank (China) Ltd. Photo: Caixin
The pace of yuan internationalization has accelerated over the past two years, enabling more Chinese companies to use the currency in overseas operations, said Ginger Cheng, president and CEO of DBS Bank (China) Ltd.
“The internationalization of the yuan has accelerated very quickly in the past two years,” Cheng said Thursday at the 16th Caixin Summit in Beijing, noting that the trend is gaining traction.
This shift allows Chinese firms to bypass the U.S. dollar in cross-border deals, cutting conversion costs and minimizing currency risk as they grow their presence abroad.
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- Yuan internationalization has accelerated in the past two years, enabling Chinese firms to bypass the U.S. dollar in cross-border deals and reduce costs and risks.
- CIPS, facilitating yuan-denominated payments, reached 174 direct and 1,509 indirect participants across 187 countries as of May 2024.
- Ginger Cheng of DBS Bank (China) highlighted AI’s growing role in financial services and the need for Chinese companies to adapt to global risk management practices.
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Who’s Who
- DBS Bank
- DBS Bank, through its subsidiary DBS Bank (China) Ltd., is actively involved in the internationalization of the yuan. As an early direct participant in China's CIPS, it expands its network across Asia and the Middle East, enabling direct currency conversions that bypass the U.S. dollar, reducing costs and risks for Chinese companies expanding globally.
- DBS Bank (China) Ltd.
- DBS Bank (China) Ltd. is led by President and CEO Ginger Cheng. The bank has been actively expanding its reach in China's Cross-Border Interbank Payment System (CIPS), bringing in banks from Asia, the Middle East, and developing markets as indirect participants. This expansion helps Chinese companies use the yuan for international operations, reducing reliance on the U.S. dollar and cutting costs.
- Standard Bank
- Standard Bank joined China's Cross-Border Interbank Payment System (CIPS) as a direct participant on June 18. This expansion marked the first time CIPS's direct foreign members included institutions from Africa. This move facilitates the internationalization of the yuan and allows Chinese companies to bypass the U.S. dollar in cross-border transactions, reducing costs and currency risk.
- African Export-Import Bank
- The African Export-Import Bank joined China's Cross-Border Interbank Payment System (CIPS) as a direct participant on June 18. This expansion marks the first time CIPS's direct foreign members include Africa, facilitating direct yuan-denominated cross-border payments for Chinese companies and supporting their internationalization efforts.
- First Abu Dhabi Bank
- First Abu Dhabi Bank (FAB) joined China's Cross-Border Interbank Payment System (CIPS) as a direct participant on June 18. This expansion marks the first time CIPS's direct foreign members include institutions from the Middle East, facilitating more direct yuan-denominated transactions for Chinese companies in the region.
- Kyrgyzstan’s Eldik Bank
- Kyrgyzstan's Eldik Bank joined China's Cross-Border Interbank Payment System (CIPS) as a direct participant on June 18. This expansion marked the first time CIPS's direct foreign members included institutions from Central Asia, alongside Africa, the Middle East, and Singapore.
- United Overseas Bank Ltd.
- United Overseas Bank Ltd. (大华银行有限公司), a foreign financial institution, became a direct participant in China's Cross-Border Interbank Payment System (CIPS) on June 18. This marks CIPS's first foreign direct member from Singapore.
- Temasek Group
- Temasek Group is a state investment firm that holds a majority stake in DBS, Singapore's largest bank and Southeast Asia's biggest lender. The article does not provide further details about Temasek Group beyond this ownership relationship.
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What Happened When
- As of the end of May 2025：
- CIPS counted 174 direct and 1,509 indirect participants, connecting to over 4,900 banking institutions across 187 countries and regions.
- June 18, 2025：
- Several foreign financial institutions — including Standard Bank, the African Export-Import Bank, First Abu Dhabi Bank, Kyrgyzstan’s Eldik Bank, and United Overseas Bank Ltd. — joined CIPS as direct participants for the first time covering Africa, the Middle East, Central Asia, and Singapore.
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