CIPS and BRICS: How China Failed to Undermine the US Financial System

China has promoted two main mechanisms to challenge the dominance of the US dollar and the US-led financial system: BRICS and the Cross-Border Interbank Payment System (CIPS). Both have failed to achieve their goals.

BRICS remains only a political grouping, not a functioning trade bloc. CIPS, launched in 2015 to clear and settle cross-border renminbi (RMB) payments, was designed to reduce reliance on the dollar. Yet it is used mostly by China and a handful of sanctioned states, with limited global appeal.

By January 2022, CIPS claimed about 1,280 member institutions in 103 countries. However, that figure is misleading. The list includes Bank…

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