An agreement was reached by the Central Bank of Libya and the People’s Bank of China to link Libyan commercial banks to the Chinese Payments and Settlement System (CIPS), to will simplify and streamline financial transfer processes.
The agreement came last Friday (17 April) on the margins of the IMF Spring Meetings 2026 in Washington DC where Naji Issa, Governor of the Central Bank of Libya, met with Pan Gongsheng, Governor of the People’s Bank of China.
The two reviewed the volume of trade between the two countries and discussed ways to enhance and increase its growth rate. They also discussed the importance of launching a new phase of a genuine strategic partnership between the two banks.
The meeting concluded with an agreement to connect Libyan commercial banks to the Chinese Payments and Settlement System (CIPS).
Starting direct transfers to China and opening LCs through Chinese banks
The two sides also agreed to overcome difficulties and work to facilitate bilateral trade procedures in order to increase the volume of trade exchange between the two countries by starting to implement direct transfers to China, which will facilitate the work of small traders, as well as opening letters of credit directly through Chinese banks.
CBL Governor to lead Libyan banking delegation to China
It was agreed to organize a visit by an official Libyan banking delegation headed by the Governor, accompanied by the general managers of Libyan commercial banks, to China as soon as possible to meet with the People’s Bank of China and Chinese commercial banks with the aim of establishing bilateral cooperation relations between commercial banks in the two countries and benefiting from the Chinese experience in the field of electronic payments and direct financial transfers.
Reducing black-market transfers
This will contribute to reducing dealings through the informal market, ensuring compliance with anti-money laundering and counter-terrorism financing standards, and improving the reputation of the Libyan banking sector.
China’s CIPS as an alternative to America’s SWIFT?
It must be noted that the Cross-Border Interbank Payment System (CIPS), launched in 2015 by the People’s Bank of China (PBOC), is a specialized, real-time, global infrastructure designed to clear and settle cross-border transactions in Chinese Yuan (RMB). CIPS provides a secure, direct alternative to SWIFT, accelerating RMB internationalization and reducing reliance on the US dollar for trade and investment
