Aktif Bank inks deal to directly participate in Cross-Border Interbank Payment System to facilitate yuan-denominated payments and settlements, benefiting Turkish SMEs, as well as large firms, says general manager
Aktif Bank became the first Turkish bank to participate in China’s Cross-Border Interbank Payment System (CIPS) in a newly signed deal at the China International Fair for Investment and Trade (CIFIT).
The system facilitates global payments and settlements to be made in Chinese yuan while eliminating the time and cost differences that traditional multi-currency conversions require, which is expected to benefit Turkish small- and medium-sized enterprises (SMEs) alongside large corporations, the bank’s general manager told Anadolu.
Aysegul Adaca Ogan, speaking on the sidelines of the event, stated that the relatively young platform was developed by the People’s Bank of China (PBoC) and has grown over the past five years with foreign banks participating in the scheme, serving over 1,800 banks.
She noted that yuan-denominated payments via CIPS rose to 28% of China’s foreign trade volume totaling $6 trillion over the past five years, while the trade volume between Türkiye and China rose from $25 billion to $50 billion over the same period.
“With rising yuan payments in Chinese foreign trade and the growing demand for yuan payment systems in Türkiye, joining this platform has been a viable opportunity for us,” she said.
Ogan stated that Aktif Bank will open its digital banking platform to enable SMEs to make payments through CIPS.
“We have over 1,300 banks worldwide, and we want to expand our corridor to include regions like China after Europe and the Americas, after closely monitoring opportunities in the Chinese market,”she said.
“We’re the only Turkish bank at the fair’s pavilion and our presence here today is an important step in our long-term strategy,” she added.
Source: aa