Ecobank to join China’s CIPS for direct yuan trade settlement

Ecobank is set to join China’s Cross-Border Interbank Payment System (CIPS) to facilitate more direct yuan settlement for trade between Africa and China. Jeremy Awori, Ecobank Group’s chief executive, stated that the agreement will strengthen the link between Chinese RMB payment infrastructure and the bank’s African banking platform.

Operating across 34 African countries, Ecobank’s participation in CIPS aims to provide businesses with alternatives to routing transactions through the US dollar. By allowing for more direct settlement, the move could reduce foreign-exchange spreads, correspondent banking fees, and settlement delays for companies importing goods such as machinery, electronics, and pharmaceuticals from China.

Ecobank is also in discussions with the Bank of China to develop yuan-settlement services. This initiative follows a broader trend of African lenders seeking to capitalize on growing China-Africa trade ties, which rose nearly 18% last year.