S’African bank embraces Yuan, ease dollar dependence for African importers
Standard Bank of South Africa has become the first financial organization on the continent to establish direct integration with China’s Cross-Border Interbank Payment System.
This significant integration signifies a clear movement away from traditional dollar-centered settlement systems, enabling Africa to gain enhanced efficiency and independence in its expanding trade with the world’s second-largest economy.
The new system allows African businesses within Standard Bank’s network to make payments to Chinese suppliers directly in yuan, removing the necessity to convert funds through the US dollar first.
In June 2025, Standard Bank received official approval to provide these CIPS services at the renowned Lujiazui Forum in Shanghai, an important venue for international financial policy discussions.
The integration was formally launched at a ceremony organized by the South African Reserve Bank, attended by Governor Lesetja Kganyago and senior officials from the People’s Bank of China and CIPS.
This development highlights the strengthening financial partnership between Africa’s largest bank and China’s rapidly growing global payments network.
Standard Bank stated that direct access to CIPS will simplify cross-border transactions by decreasing currency conversion steps, reducing costs, and minimizing settlement delays that often impact dollar-based payments.
Crosby Mkhwanazi, the Head of Client Coverage at Standard Bank Corporate and Investment Banking, remarked, “We actively support Africa’s growth, and this new service is designed to provide solutions tailored to our clients’ needs in their respective markets. The system will foster greater integration with an essential trading partner and deliver diverse options for optimizing their operations.”
The bank pointed out that this new system will assist African importers in reducing their exposure to fluctuations in the dollar exchange rate, especially for products like machinery, electronics, textiles, and construction materials sourced from China. Standard Bank also mentioned that the service opens new avenues for clients to streamline and enhance their trade operations with the Chinese market.
Standard Bank’s connection with CIPS exemplifies a broader shift in Africa as trade patterns evolve and new geopolitical and economic alliances emerge.
African countries are increasingly considering alternative currencies that align with their growing trade relations with China.
This initiative is also in line with the broader objectives of the expanded BRICS group, including South Africa, to promote local currency settlements and lessen dependence on the US-dominated financial system.
Leave A Comment