SWIFT Inks MOU With China’s CIPS

SWIFT, a global provider of financial messaging services, has inked a Memorandum of Understanding (MOU) Memorandum of Understanding (MOU) A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view Read this Term) with China’s Cross-border Interbank Payment System (CIPS), helping integrate China with the broader global SWIFT community, according to a SWIFT statement.

In particular, the MOU will aim to strengthen China’s overseas payment capabilities via SWIFT’s globally utilized infrastructure. The MOU was jointly signed last week between CIPS and SWIFT executives, including SWIFT’s Chief Executive of the Asia-Pacific region (APAC) and Europe, Middle East, and Africa (EMEA), Alain Raes.

During H2 2015, SWIFT’s global currency tracker showed a steady uptick in the utilization of the Chinese RMB for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, which demonstrated the notion of the growing popularity of international payments in China. More recently, SWIFT embarked on a global initiative earlier this year, which helped enhance cross-border transactions via the leveraging of SWIFT’s messaging platform capabilities and global outreach – the initiative was supported by a membership of forty-five leading banks and investing institutions.

According to CIPS Executive Director Li Wei in a recent statement on the MOU: “China International Payment Service Corp. is looking forward to benefiting from SWIFT’s platform and services to provide an efficient and convenient channel to the global financial community.”

“We aim to provide an inclusive platform to capture cross-border RMB flows to all types of participants which will significantly extend the reach of RMB internationalization,” he added.

“SWIFT is a global messaging provider supporting more than 150 payment and settlement systems, and CIPS is a payment system. There are natural synergies between global financial messaging services, such as those provided by SWIFT, and payment systems. Working with such market infrastructures is at the heart of our business,” noted Mr. Raes in an accompanying statement.