(Bloomberg) -- HSBC Holdings Plc has become a direct participant in China’s cross-border interbank payment system as the world’s second largest economy pushes for greater use of the yuan.
The UK lender, which counts Hong Kong as its biggest market, said that becoming a participant “allows HSBC to play an integral role in supporting the growing demand from its clients for solutions that facilitate renminbi trade,” according to a statement.
Global leaders are concerned that the dollar is being used to push US foreign-policy priorities. Unease with the dominance of the US and the dollar is pushing some countries and companies to diversify away from America and Europe.
CIPS, China’s alternative payment system to SWIFT, was embraced by institutions in Russia, after the US kicked major Russian lenders off the system.
The use of the yuan in contracts for everything from oil to nickel is gathering speed, though the currency is still a tiny portion of global transactions and remains tightly controlled by Chinese authorities. Sanctions that ensnared Moscow following its invasion of Ukraine have added to that pace.
HSBC has been deepening its presence in China despite a slowdown, and earlier this year agreed to buy part of its partner’s stake in a China fund venture.
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