Libya to connect commercial banks to China's CIPS payment system
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The Central Bank of Libya and the People's Bank of China signed an agreement to connect Libyan commercial banks to the Cross-Border Interbank Payment System (CIPS), enabling direct yuan-denominated transfers. The deal was reached in Beijing during a meeting between Libyan central bank governor Naji Muhammad Isa and PBOC governor Pan Gongsheng.
The Agreement
The Central Bank of Libya and the People's Bank of China signed an agreement to integrate Libyan commercial banks into the Cross-Border Interbank Payment System (CIPS). The deal, finalized in Beijing, allows direct yuan-denominated cross-border transfers, bypassing dollar channels and intermediaries. Libyan central bank governor Naji Muhammad Isa and PBOC governor Pan Gongsheng led the talks.
Implementation Plan
The new mechanism will begin with direct transactions and the ability to open letters of credit through Chinese financial institutions. A delegation of Libyan bankers will visit Beijing soon to study China's electronic payment systems and finalize technical regulations. The move aims to simplify trade procedures and boost bilateral trade volumes.
Expected Impact
Libya's regulator expects CIPS integration to reduce informal financial market operations and strengthen compliance with international anti-money laundering standards. The system is also intended to increase transparency in settlements and enhance trust in Libya's banking sector. Small businesses and importers are expected to benefit from easier cross-border payments.
What's Next
A Libyan banking delegation will visit Beijing in the coming weeks to study China's electronic payment systems and finalize technical regulations. It remains unclear when the first commercial banks will go live on CIPS and how quickly the system will reduce Libya's reliance on dollar-based transactions.
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Libya to connect commercial banks to China's CIPS payment system
