Nation plans cross-border payment mechanism

New interbank system to increase global use of Chinese currency, reduce transaction costs

The nation will launch a cross-border interbank payment system this year, said Yi Gang, deputy governor of the People's Bank of China, after he attended a group discussion at the National Committee of the Chinese People's Political Consultative Conference on Wednesday.

As the capital account is gradually being opened up and capital flows keep growing, China aims to build a cross-border payment and clearing system that handles large sums of capital and integrate it with the domestic real-time gross settlement system, a source with direct knowledge of the matter told China Daily.