Kyrgyzstan's Ministry of Finance discusses CIPS participation and cross-border payment infrastructure with China

Kyrgyzstan's Ministry of Finance reported that Finance Minister Almaz Baketaev held a bilateral meeting in Beijing with Lan Foan, Minister of Finance of the People’s Republic of China, on the margins of the Shanghai Cooperation Organisation finance ministers and central bank chairs meeting, focusing on payment infrastructure and cross-border settlements. Discussions centred on the potential for Kyrgyz state-owned banks to join China’s Cross-Border Interbank Payment System (CIPS) to facilitate bilateral settlements in yuan, reduce transaction costs, and reduce reliance on third-currency settlement channels. The Kyrgyz side also flagged plans to consult Chinese competent authorities on regulatory and technical assessments, seek support to open correspondent accounts with authorised Chinese banks, and consider creating or acquiring a licensed payment institution in China to connect to Chinese payment systems including CIPS, CNAPS and UnionPay. The Ministry confirmed readiness to engage in a structured dialogue with the People’s Bank of China and the National Financial Regulatory Administration and to establish contacts with potential partners in China, including on strategic partnerships related to computing infrastructure.