BRICS Payments System Expands Global Reach as China Pushes Yuan Internationalization

China's Cross-Border Interbank Payment System (CIPS) now connects 185 countries, processing 52 trillion yuan ($7.2 trillion) in settlements this year - representing 58% of China's total cross-border transactions. The yuan-based system has become a viable alternative for global trade settlements, particularly among developing economies participating in China's Belt and Road Initiative.

Shanghai's commodities markets now price LNG contracts and soybean trades exclusively in yuan, while 95% of China-Russia trade has been settled in local currencies for three consecutive years. Despite this progress, Western economies including Europe, North America and Australia remain cautious about adopting the system.

The geopolitical landscape continues to shift as BRICS nations advance their financial infrastructure while U.S. policies under the TRUMP administration have created fractures in traditional Western alliances. These developments occur against a backdrop of escalating global tensions, with the Ukraine conflict and U.S.-China economic rivalry contributing to unprecedented financial market instability.