How China Is Building a Parallel Cross-Border Payment System

China Economy with Fexingo: Beijing's Policies, Trade, and Asia-Pacific Markets · Jul 18, 2026 · 8m · transcript

China's yuan-denominated cross-border payment system is quietly expanding as the dollar's dominance faces new challenges. With the yuan per dollar at 6.78 and a trade-weighted dollar index of 120.5, Beijing is accelerating efforts to bypass the SWIFT network through its own Cross-Border Interbank Payment System (CIPS). Lucas and Luna break down how CIPS works, who's joining it, and what it means for global trade—especially as the US-China deficit widens. They examine the recent surge in yuan trade settlements, the role of China's central bank digital currency, and why…