China’s CIPS will become settlement norm in Mongolia within 2 years, Golomt Bank says
Six months after Golomt adopted the technology, 96 per cent of yuan payments moved from Swift to China’s payment system, the bank says
China’s cross-border payment system is reshaping how Mongolian banks move money, with the country’s second-largest lender predicting most major banks would join the network within two years as trade with its southern neighbour becomes increasingly settled in yuan.
Within six months, 96 per cent of Golomt’s yuan payments had migrated from the Society for Worldwide Interbank Financial Telecommunication (Swift) messaging network to CIPS, cutting settlement times from one or two days to near real time, while lowering transaction costs for importers and small businesses trading with China.
“Before that, all those transactions were made through correspondent banks, but now Golomt Bank is a direct participant in CIPS, so we don’t need to route through other banks,” chief executive Amarzaya Odonbaatar said in an interview with the South China Morning Post. “It’s quite affordable and saves time for our customers who do cross-border business.”
“The main thing is the speed,” Odonbaatar said. “We showed customers it is very convenient.”