Awake-in-3D May 10, 2015 CIPS is "ready now"
Note the date of this article in context of the CIPS readiness. When companies and governments state "officially ready", that does not mean it cannot be used before the official date. CIPS is much more than a SWIFT alternative, it is also a trading platform to handle stock market orders and much more. :)
China's international payments system is almost ready
Reuters MAR. 9, 2015
HONG KONG (Reuters) - A long-awaited China International Payment System (CIPS) that would facilitate international usage of the yuan is ready and may be launched as early as September or October, three sources with direct knowledge of the matter told Reuters.
The system, which would be a worldwide payments superhighway for the yuan, will replace a patchwork of networks and allow hassle-free renminbi transactions, greatly boosting the internationalization of the Chinese currency.
"The CIPS is ready now and China has selected 20 banks to do the testing, among which 13 banks are Chinese banks and the rest are subsidiaries of foreign banks," said a senior banking source who is involved in the matter.
"The official launch will be in September or October, depending on the results of the testings and preparation," the source said.
DinarGrubber > Awake-in-3D CIPS sounds like the perfect "drop-in" replacement for SWIFT,and financial swiss army knife. I'm all for it going forward.
Karin > Awake-in-3D Wow, great. Something the US can't block. Isn't it September that the basket can update itself?
Awake-in-3D May 10, 2015
WHAT IS CIPS? (Note that this report is from March 2013! This is not a brand new project...)
CIPS a ‘game changer’ but will take about two years to complete
Standard Charter Special Report from March 2013
There is no question that the coming China International Payment Platform (CIPS), first announced by the People’s Bank of China (PBOC) in April, has the potential to be a game changer. Though the international renminbi clearing platform will take several years to develop, the basic functionality is expected to markedly improve access for foreign corporates as well as help accelerate the process of internationalizing the renminbi. CIPS for the first time will put the renminbi on an even footing with other global currencies in areas such as operating hours, risk reduction and liquidity optimization.
The introduction of the CIPS system is a huge positive for the development of the offshore renminbi market. CIPS is expected to take around two years to commence and will address a number of challenges to doing cross-border trades with Chinese onshore entities. For example, global transaction banks use international standard messaging for communication, reducing operational risk and lowering the cost of transactions.
However, in China currently, players use the China National Payment System (CNAPS) which does not allow one-to-one comparisons. A future CNAPS release will be based on international standards and should allow a more direct comparison between what is used in the international interbank market and domestic China. CIPS will likely also be in line with international standards, which will keep transaction processing costs low for the industry.
While next generation CNAPS will remain for onshore use, CIPS will cater specifically to international transactions. There is great expectation that CIPS will make trading renminbi more efficient particularly for payments in and out of China. It is expected that CIPS will have four key features:
Enables cross-border renminbi clearing among both onshore and offshore participants
Uses international reporting standards and be multilingual
Can handle payments in 17 time zones in Asia, Africa, Europe and Americas simultaneously
Run on SWIFT ISO20022 standards, thus optimizing mapping between SWIFT message formats and CNAPS message formats
If the new system is well thought through from payment origination to completion – from one remote location to another and through multiple correspondent banks – it will reduce transaction costs and processing time, boosting confidence and encouraging the use of the Chinese currency.
Awake –in-3D Where is China getting all of its gold from? Hmmmmm... (Hint: Historical Assets!)
China Is About to Shock the World
Posted By: The Sovereign InvestorPosted date: May 10, 2015
We are on the verge of a golden shock.
I wrote recently about plans by the International Monetary Fund (IMF) to include the Chinese currency as one of the reserve currencies that back the IMF’s so-called Special Drawing Rights.
Well, there’s another facet to that story that you need to know … and it echoes the warnings I first began voicing in early 2014.
As part of the IMF’s plan to bring the yuan into the basket of reserve currencies, IMF officials want Chinese authorities to provide an update on the quantity of gold squirreled away inside China’s vaults. That news, when it’s released, will be a wake-up call to the world. It will underscore the degree to which sovereign governments outside America value gold, and it will send the price of gold higher as global investors and savers comprehend the ramifications of the number China ultimately reports.
3,510 tons of gold.
That’s the estimate of China’s gold holdings that’s currently floating around the media. If that turns out to be the true figure, it would be more than three times the 1,054 tons of gold that China last reported officially in 2009.
That whisper number, I believe, is much too light.
Based on the quantity of gold China mines each year — it’s the world’s largest gold producer — and on the reported quantities of gold flowing into the country through Hong Kong and Switzerland, I calculate that China more realistically owns somewhere between 5,000 tons and possibly as much as 11,000 tons of gold.
Such a quantity would shock the world … because, primarily, it would raise enormous questions about where China collected all this gold.
China doesn’t mine enough to account for the spike. And the consumption of gold globally for jewelry and industrial uses takes up nearly 66% of global production, meaning that even if China bought every other ounce produced each year, that still would not account for the large increase in its holdings.
No, some of the gold in China’s vaults would have to come from a very large seller of gold … and the only large seller would be another central bank. (Which one — and you know which one I’m talking about — is a subject for another day.)