CIPS Hits $7 Trillion Monthly, Yuan Gains Ground Amid De-Dollarization Push
China's Cross-Border Interbank Payment System (CIPS) has experienced rapid growth in recent years, particularly since 2022 when Western governments froze a significant portion of Russia's overseas reserves. The system, which facilitates international yuan payments and settlements, now processes over $7 trillion in transactions per month.
The expansion of CIPS is closely tied to the growing trend of de-dollarization, where countries seek to reduce their dependence on the US dollar due to concerns about financial resilience and national security. Major geopolitical events such as Iran's exclusion from SWIFT, sanctions imposed on Russia, and the freezing of part of Russia's foreign exchange reserves have reinforced these concerns.
The People's Bank of China reports that CIPS processed 8.4419 million transactions with a combined annual value equivalent to approximately $25.55 trillion in 2025. Preliminary figures from the first half of 2026 indicate continued growth, with average daily transaction value increasing from around $96 billion in 2025 to over $118 billion by June 2026.
While the yuan has gained significant ground as an alternative settlement currency, it still lags behind the dollar, which remains the world's dominant reserve and payment currency. According to SWIFT data, the yuan accounted for approximately 3.10% of global payments in June 2026, ranking fifth among major currencies.