Aiming to boost global use of the Chinese currency, Beijing is ready to launch its own long-awaited international payment system. "By the end of the year, we will complete the development of China's International Payment System, CIPS", Premier Li Keqiang said at the annual plenary session of the State Council, China's cabinet. Moreover, the top official confirmed the government’s intention to loosen restrictions on private capital access to the financial sector. Li Keqiang noted that China plans to assist in facilitating foreign central banks in the inter-bank foreign exchange market. "We have a high savings rate and large foreign exchange reserves. It is necessary to use these resources effectively, and to improve the efficiency of the financial sector, by reducing the key rate," he said. In his speech, the prime minister described steps the Chinese government is taking to become more open to the world community. To solve this issue, the financial sector legislation should be streamlined. The launch of the CIPS will remove one of the biggest hurdles to internationalizing the yuan as the new payment system is expected to use the same messaging format as other international payment systems, making transactions smoother. "We will help develop private banks, and open the financial sector wider for the rest of the world. It is our goal," Li Keqiang added.
