**SWIFT to CIPS**
Kyrgyzstan is beginning its integration with the Chinese financial messaging system CIPS (Cross-Border Interbank Payment System). The new mechanism will make it possible to conduct settlements in yuan directly, without intermediary banks. This was reported by the National Bank of the republic. CIPS already connects 119 countries, operates faster than SWIFT, and its commissions are 20–40% lower.
For Kyrgyzstan, transitioning to the Chinese platform is a way to reduce the risks of international transactions being blocked, especially against the backdrop of sanctions pressure on Russia and Belarus, with which the republic actively trades. At the same time, China remains a key factor, accounting for about 30% of the country's foreign trade turnover. Simplifying settlements with Beijing is expected to boost the supply of goods and attract investment.
Experts point out that the system also has disadvantages. CIPS works only with the yuan, and after the transition, a portion of Kyrgyzstan's reserves will inevitably be converted into the Chinese currency. This creates a dependency on the yuan's exchange rate, which can be volatile. In addition, connecting to CIPS is technically complex and will require upgrading the IT infrastructure of banks. The National Bank, however, states that the system has already been tested and will allow businesses to reduce costs and transaction times. It is also noted that CIPS does not replace SWIFT entirely, but rather serves as an alternative channel for settlements with partners from China and other participating countries.