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China's payments system scaled back; trade deals only: sources
[HONG KONG] China is set to launch a watered down version of its long-awaited international payments system, incorporating only trade transactions rather than allowing the yuan to also be used for capital related deals, two people with direct knowledge of the matter told Reuters on Monday.
This would be a second setback to China's ambitious plans to offer a unified network for settling yuan transactions after it failed to get off the ground as expected last year due to technical problems.
The scheme, expected to be launched later this year, will now offer at best a complementary network for settling trade-related transactions to a current patchwork of Chinese clearing banks dotted around the world.
"I think ambition stood before ability," said one of the individuals who is directly involved in the implementation of the project. "It doesn't include a lot of things, but there is pressure for delivery."