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Not sure how significant this may be, but I found it interesting to note:
The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, met with Bank of England Governor Andrew Bailey in London to discuss strengthening cooperation in monetary policy, digital transformation, and currency management.

Talks covered Iraq’s interest in drawing on the Bank of England’s expertise in updating banknotes and exploring studies on digital currencies.

Al-Alaq highlighted that Iraq’s monetary policy has succeeded in maintaining overall price stability, with inflation dropping to below two percent, the lowest level in the country’s history.

The two sides also reviewed cooperation on foreign reserve management, as part of Iraq’s holdings are kept in the Bank of England’s vaults.

Al-Alaq further urged Bailey to back Iraq’s request to join the Bank for International Settlements in Switzerland, noting the Bank of England’s role on the BIS board.
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pmbug said:
When rumors of China opening an SGE warehouse in the KSA first surfaced, I was skeptical because I thought there was no way the USA would allow that to happen. It would be conceding the death of the petrodollar if KSA were to start trading oil in RMB/gold with the BRICS+.

When confirmation of China developing an SGE warehouse became evident, I was perplexed. Is the USA asleep at the wheel here?

The KSA-Pakistan defense pact is a huge signal that KSA is no longer looking to be the USA's partner. I think this portends massive changes to the geopolitical and global financial status quo.
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Arnaud Bertrand said:
I don't think I'm exaggerating by saying that this truly is the US's Suez moment: Saudi Arabia just entered into a NATO-like alliance with Pakistan whereby "any attack on either country is an attack on both."

The symbolic is extraordinary: Saudi Arabia was in many ways THE poster child of US client states. If they no longer trusts American security guarantees, why should anyone else?

And of course the fact this actually happened and wasn't prevented by the U.S. is immensely telling in and of itself.

This has so many other consequences that it's almost too much to fathom:

- First of all, it means that Saudi Arabia now benefits from Pakistan's nuclear deterrence (and the deal does include nuclear: a senior Saudi Official told Al Jazeera that “this is a comprehensive defensive agreement that encompasses all military means”, https://aljazeera.com/news/2025/9/1...tual-defence-pact-with-nuclear-armed-pakistan). Which means we now officially have two nuclear-backed blocs in the Middle East: US-Israel vs Pakistan-Saudi. Additionally, Pakistan explicitly rejects a "no first use" doctrine - meaning Saudi Arabia now has a protector willing to use nuclear weapons preemptively.

- Given that 81% of Pakistan's weapon imports come from China (https://scmp.com/news/china/militar...akistans-arms-imports-past-5-years-sipri-says), it also means that Saudi Arabia just indirectly aligned itself with the Chinese military-industrial complex

- This effectively extends the China-Pakistan Economic Corridor (CPEC) to the Persian Gulf, protected by Pakistani nuclear weapons and Chinese military technology - creating a secure energy corridor from the Middle East to China that completely bypasses the Strait of Malacca

- The timing is probably no coincidence, just days after Israel's strike on Qatar, the ultimate proof of the worthlessness of US protection.

- Other Gulf states, and probably in due times other countries "protected" by the U.S., are likely to explore comparable models in the next few months. In fact this might lead to a cascading collapse of the U.S. global alliance system, leading to an entirely new international system where regional nuclear powers become security providers.

- Hard to see how that doesn't permanently kill any chance of Israel-Saudi normalization: Pakistan does not recognize Israel either and with this alliance the Saudis now can resist US pressure as they don't solely depend on them for their defense

- It puts India in an extremely tough spot: its archenemy just became the security guarantor for one its primary energy suppliers

- This undoubtedly kills IMEC (India-Middle East-Europe Economic Corridor), the Biden administration's flagship grand strategy to counter China's Belt and Road that was supposed to connect India to Europe via Saudi Arabia

- There is a monetary aspect too: this is another nail in the coffin of the petrodollar system (an agreement to price oil exclusively in USD in exchange for US protection). Saudi Arabia is now much more flexible to price oil in whatever currency it wishes

And this is just what's immediately visible. As a final word: if anyone had any remaining doubt that we were now in a multipolar world, that debate is now settled permanently. American global dominance is no more.
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High level summary of the SGE issue:
China is quietly building a digital gold system that could replace the dollar in trade. Here’s how…

1/
💡 Did you know China runs two gold systems?
1) SHFE → futures, speculation, collateral.

2) SGE → spot, physical settlement, international vaults.
Banks constantly shuffle gold between them.

But a new shift could make both redundant 👇
#Gold #DeDollarization #China #BRICS #DigitalAssets #SoundMoneyImage

2/
Today it’s clunky:
1) Want leverage? Park gold in SHFE warrants.

2) Want to settle trade? Convert into SGE warrants.
Slow. Costly. Limited.

3/
Now imagine: instead of shuffling bars & paper warrants, banks issue gold tokens backed 1:1 by vault reserves.
⚡ Move instantly.
⚡ 24/7.
⚡ Across borders.
⚡ Fractional (down to grams).

4/
Think of it like this:
1) SHFE = your brokerage account.

2) SGE = your checking account.

3) Gold tokens = one digital wallet that does BOTH.

5/
For people like us 👉
Imagine paying someone in Dubai 0.5 grams of gold with a click.
No bank delays. No Swift. No USD middleman.
Gold finally becomes spendable money.

6/
For countries trading with China 👉
1) Oil from Saudi.

2) Wheat from Russia.

3) Copper from Africa.

All can be settled in gold tokens instead of USD.

Trust shifts from “paper promises” to “vault-backed digital gold
...
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threadreaderapp.com

Thread by @SunilRe89392848 on Thread Reader App

@SunilRe89392848: China is quietly building a digital gold system that could replace the dollar in trade. Here’s how… 1/ 💡 Did you know China runs two gold systems? 1) SHFE → futures, speculation, collateral. 2) SGE...…
threadreaderapp.com threadreaderapp.com
 
Nothing to see, can listen in one tab, play around the forum in a different tab. It's an opinion piece so dyodd.

 
...
China aims to become custodian of foreign sovereign gold reserves in a bid to strengthen its standing in the global bullion market, according to people familiar with the matter.

The People’s Bank of China is using the Shanghai Gold Exchange to court central banks in friendly countries to buy bullion and store it within the country’s borders, said the people, who spoke on condition of anonymity as the discussions aren’t public. The effort has taken place over recent months and has attracted interest from at least one country, in Southeast Asia, the people said.
...
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China aiming to replace the LBMA
 
The Ministries of Finance of Russia and China discuss creating an independent depository to replace Euroclear and Clearstream, Russian Finance Minister Anton Siluanov said in an interview with Izvestia on the sidelines of the Moscow Financial Forum.

"Together with our colleagues from the People's Republic of China, we are discussing this difficult but very important issue. The goal is for our investors to be able to freely buy securities in one country from another, without restrictions and obstacles, so that they can safely invest in securities of companies in our countries. We are raising this issue in financial dialogues with the Ministry of Finance of the People's Republic of China," he said.

According to him, this system will be practically no different from Euroclear and Clearstream. The minister added the main thing is accessibility for Russian and Chinese investors.
...
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tass.com

Russian finance minister revealed details of Russian-Chinese alternative to Euroclear

Anton Siluanov emphasized that the goal is for Russia's investors to be able to freely buy securities in one country from another, without restrictions and obstacles
tass.com tass.com
 
<Huitong News September 17 2025>

Chief Executive John Lee Ka-chiu delivered the fourth Policy Address of his current term, announcing plans to accelerate Hong Kong's development as an international gold trading market.

He stated that the HK government has accepted recommendations from the "Task Force on Promoting Gold Market Development," which will be implemented by the Financial Services and the Treasury Bureau. Key measures include: promoting the Airport Authority and financial institutions to expand gold storage facilities in Hong Kong, with a target of exceeding 2,000 tonnes within three years to establish a regional gold reserve hub; encouraging gold merchants to establish or expand refineries in Hong Kong, while exploring toll processing arrangements with the mainland to refine gold for export to Hong Kong for trading and settlement purposes.

The initiative also involves establishing a Hong Kong Gold Central Clearing System to provide efficient and credible clearing services for internationally standardized gold transactions. The Shanghai Gold Exchange has been invited to participate, laying the groundwork for future connectivity with the mainland market. Additionally, efforts will be made to diversify gold investment instruments by assisting issuers in launching gold-focused funds and supporting the development of new products, such as tokenised gold investment products.

Support will be provided for the industry to establish a gold association, creating a communication platform with the government and regulatory bodies. This will enhance promotion efforts, attract Belt and Road clients, and strengthen talent development.

He noted that the Shanghai Gold Exchange International Board has set up its first overseas delivery (交割) warehouse in Hong Kong and launched new contracts for delivery in the city. The government will continue to advance gold market cooperation between Hong Kong and Shanghai.
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A couple of nuggets on the SGE warehouse expansion plans (to support global RMB/gold trade) from Eric Yeung:



Eric Yeung said:
The Shanghai Gold Exchange Authorized Participant Old Man is spilling information again!

This time he is telling us the possible upcoming locations of the next SGE offshore #Gold vaults (below is the English transcript of his video):

“The Shanghai Gold Exchange plans to establish overseas gold delivery warehouses, and I predict four cities will be prioritized:

Hong Kong, China; Singapore, the hub of Southeast Asia; Zurich, Switzerland, the European hub; and Dubai, UAE, the Middle Eastern hub. These four cities impose no tariffs, value-added taxes, goods and services taxes, or declaration quantity restrictions on the import and export of 9999 gold bars and ingots.

Gold trading is highly active in these locations. Among them, Zurich, Switzerland, serves as the global center for gold refining and storage. Additionally, gold ingots imported into the EU are also exempt from tariffs. For gold bar transactions in these four cities, anti-money laundering declarations and purchase documentation are required.

Furthermore, the Industrial and Commercial Bank of China and the Bank of China have branch vaults in all four cities, making the storage and withdrawal of gold bars and ingots highly convenient.”
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China Plans 4 New Gold Hubs as it Moves Forward With Global Reset​

Oct 3, 2025 #china #gold #secret
“The global financial order is tilting—and it’s not going to stop,” says Dr. Nomi Prins, former Goldman Sachs managing director and bestselling author of Collusion.
With the Shanghai Gold Exchange launching offshore vaults in Hong Kong, Singapore, Zurich, and Dubai, Prins calls it a “time zone tilt, a geographical tilt, a power tilt” that shifts gold—and power—away from the West.
“This is about redistricting the globe around the hard currency of gold,” she explains. “Central banks are diversifying away from the dollar, and gold is now the second most held reserve asset worldwide, ahead of the euro. China has been carefully sequencing this strategy for over a decade.”
As gold surges toward $4,500 and silver gains momentum, Prins sees the East tightening its grip: “More nations are moving their gold away from London and into Shanghai or Singapore. That takes supply off the market, lifts prices higher, and creates an entirely new power base.”


16:40

Chapters:
00:00 – China’s bold gold move
03:04 – Why new offshore vaults matter
05:38 – Inside China’s decade-long gold strategy
07:30 – The de-dollarization push
09:30 – Can China dethrone the LBMA?
12:38 – Gold’s next target: $4,500+
13:19 – Silver set to soar: $60 in sight
15:08 – Is China on track to overtake global finance?
 
pmbug said:
More:
apnews.com

China's Xi seeks expanded role for Shanghai Cooperation Organization at Tianjin summit

Chinese President Xi Jinping has announced plans to accelerate the creation of a development bank and set up an international energy cooperation platform.
apnews.com apnews.com
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More. Contains some interesting links. Worth a read imo.

warontherocks.com

Is the Shanghai Cooperation Organization Just a Talking Shop?

The Shanghai Cooperation Organization convened for its 25th summit in Tianjin on Sept. 1, the largest gathering of leaders in the organization’s history.
warontherocks.com
 
Related but along maritime lines.

splash247.com

What happens when the world’s ballast currency starts to slip? - Splash247

The dollar’s wobble exposes shipping’s one-currency weakness, writes Andrew Craig-Bennett. As we all know, to generate a really big shipping crash, you must start with a banking crash. If the banks are having difficulty with that mundane banking operation, trade credit, things must be properly...
splash247.com splash247.com
 
^^^

Gee, maybe offshoring everything to China and Trashkanistan wasn't so smart.

We were bound to find it out, anyway. Free and unmolested shipping on the high seas, is not a natural state. It's been a 70-year fluke, enforced by the last-standing superpower. So, all it is going to take, is another war period - which we seem to be going into - to make massive shipments of goods, prohibitively expensive.

And whoever replaces Uncle Sam as the world's policeman, probably is gonna be more interested in extracting tribute from shippers than in keeping the seas open.
 
pmbug said:
China wants to expand the Shanghai Gold Exchange (SGE) internationally to facilitate RMB for gold trading - essentially encouraging trade partners to trade with RMB because it can be easily converted to gold. The RMB trading takes place using CIPS.

"... CIPS has shown explosive growth (e.g., ~93% increase from 2021 to 2024)."

China appears to be successfully growing CIPS usage and trade volume even without the SGE's RMB-gold trading support fully realized yet.

"CIPS's rapid expansion (average +37% YoY 2021–2024) positions it as a rising challenger, especially for Asia-Pacific trade, but it still relies on SWIFT for ~80% of its messages."

That would appear to be a huge flaw in China's plan to escape American influence in global trade. CIPS still has a long ways to go before it stands on its own legs as a challenger to SWIFT.
Click to expand...



Grok:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Q: compare CIPS trade volume to SWIFT for the last few years


Overview of CIPS and SWIFTCIPS (Cross-Border Interbank Payment System) is China's RMB-denominated cross-border payment infrastructure, launched in 2015 as an alternative to global systems like SWIFT for facilitating international trade and settlements primarily in renminbi. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the dominant global messaging network for secure financial communications, handling instructions for the vast majority of high-value cross-border payments in multiple currencies.Key differences in scope:
  • CIPS: Focuses on RMB transactions, with growing multi-currency support; processes actual settlements.
  • SWIFT: Provides messaging for payments (not settlement itself); covers all major currencies and a broader range of financial messages (e.g., securities, FX).
Trade volumes refer to the total value of payments processed annually. Data for CIPS is readily available from official reports, while SWIFT does not publish exact total values (as it is a messaging service), but estimates are derived from daily averages reported by reliable sources like the U.S. Federal Reserve. SWIFT's volumes have remained relatively stable year-over-year due to its mature, global dominance, while CIPS has shown explosive growth (e.g., ~93% increase from 2021 to 2024).Annual Trade Volume Comparison (in USD Trillions)The table below compares annual payment values for 2021–2024 (the most recent full years with consistent data). SWIFT estimates assume ~250 trading days per year. 2020 CIPS data is included for context but omitted for SWIFT due to limited comparable estimates. 2025 data is partial (H1 only for CIPS) and not included in the table.

YearCIPS Value (USD Tn)SWIFT Value (USD Tn, Est.)CIPS as % of SWIFTYear-over-Year Growth (CIPS)
20207.25~450~1.6%+30% (from 2019)
202112.68~450~2.8%+75%
202214.03~450~3.1%+11%
202317.09~450~3.8%+22%
202424.47~450~5.4%+43%

Notes on Data:
  • CIPS: Sourced from official statistics via Wikipedia and PBOC reports. Values are for cross-border RMB payments; USD conversions use average annual exchange rates (e.g., ~7.2 RMB/USD in 2024). Growth reflects increasing adoption amid RMB internationalization and geopolitical shifts (e.g., post-Russia sanctions).
  • SWIFT: Estimated at ~$1.8 trillion daily average (as of mid-2024), yielding ~$450 trillion annually.

    This figure is consistent across recent analyses and represents high-value cross-border flows (primarily USD/EUR-denominated). Earlier estimates (e.g., $5 trillion daily in 2004) have scaled down per message due to more but smaller transactions; recent reports suggest slight increases to ~$21 trillion daily in 2025, but we use the conservative Fed figure for consistency.
  • Trends: CIPS volumes have more than tripled since 2021, driven by China's trade surplus and de-dollarization efforts, but it remains niche (RMB share in global payments ~4–6% via SWIFT). SWIFT handles ~90–95% of global cross-border messaging, with minimal disruption from alternatives like CIPS.
Key Insights
  • Scale Gap: SWIFT processes 18–60 times more value annually than CIPS, underscoring its entrenched role in global finance.
  • Growth Trajectory: CIPS's rapid expansion (average +37% YoY 2021–2024) positions it as a rising challenger, especially for Asia-Pacific trade, but it still relies on SWIFT for ~80% of its messages.
  • Implications for Trade: While CIPS reduces reliance on USD/SWIFT for China-related flows, full displacement is unlikely soon due to SWIFT's network effects and multi-currency universality.
For 2025 projections, CIPS could exceed $30 trillion if H1 growth (39% YoY) persists, but SWIFT is expected to grow modestly (3–5%) with global trade recovery.

~~~~

Q: " it still relies on SWIFT for ~80% of its messages. " -> Why? Is this a technical issue within CIPS?


The reliance of CIPS (China’s Cross-Border Interbank Payment System) on SWIFT for ~80% of its messages is not primarily a technical issue within CIPS but rather a reflection of practical, operational, and network-related factors in global finance. Below, I explain why this dependency exists and clarify that it stems from interoperability needs, not technical deficiencies in CIPS.Why CIPS Relies on SWIFT for ~80% of Messages
  1. SWIFT’s Global Network Dominance:
    • SWIFT is the de facto standard for secure financial messaging, connecting over 11,000 institutions across 200+ countries. Its standardized messaging protocols (e.g., MT and ISO 20022) are universally adopted, making it the backbone of cross-border payments.
    • CIPS, launched in 2015, connects ~1,500 institutions (as of 2024), mostly in Asia or with China trade ties. For transactions involving non-CIPS members (e.g., banks in Europe or the Americas), SWIFT messaging is often required to bridge the gap.
  2. Interoperability for Global Reach:
    • Many cross-border RMB transactions involve banks that are not direct CIPS participants. To communicate payment instructions to these banks, CIPS uses SWIFT’s messaging network, as it’s the most reliable way to reach non-CIPS institutions globally.
    • For example, a Chinese exporter sending RMB to a U.S. bank may use CIPS for settlement, but the U.S. bank, if not a CIPS member, receives instructions via SWIFT.
  3. Hybrid Messaging Model:
    • CIPS primarily handles RMB settlement and clearing but relies on SWIFT for messaging in cases where transactions cross multiple systems or jurisdictions. About 80% of CIPS transactions involve SWIFT messages to ensure compatibility with global banking systems, especially for correspondent banking relationships outside China’s direct network.
    • This is not a flaw in CIPS but a pragmatic choice to leverage SWIFT’s established infrastructure while CIPS expands its participant base.
  4. Standardization and Legacy Systems:
    • SWIFT’s messaging standards (e.g., MT103 for payments) are deeply embedded in global banking IT systems. Many banks, even those using CIPS, maintain SWIFT-based workflows for non-RMB or multi-currency transactions, reducing the need to overhaul legacy systems.
    • CIPS supports ISO 20022 (like SWIFT), but its smaller network means SWIFT is often the default for messaging when transactions involve non-CIPS banks or complex correspondent chains.
  5. Geopolitical and Adoption Dynamics:
    • While CIPS aims to reduce reliance on Western-dominated systems like SWIFT, its growth is constrained by the slow adoption of RMB globally (only ~4–6% of global payments in 2024). Many international banks prefer SWIFT for its neutrality and broader currency support.
    • Post-2022 sanctions on Russia increased CIPS usage among BRICS nations, but even these transactions often use SWIFT messaging for non-CIPS counterparties.
Is This a Technical Issue Within CIPS?No, this is not a technical limitation in CIPS’s infrastructure:
  • CIPS Capability: CIPS is a robust, modern system designed for real-time gross settlement (RTGS) of RMB transactions. It uses ISO 20022 and has direct connectivity for its participants, with no reported technical deficiencies in processing or messaging for its members.
  • Dependency Reason: The reliance on SWIFT is a strategic and operational choice to ensure global interoperability, not a sign of technical inadequacy. CIPS could theoretically handle all messaging internally if all counterparties were participants, but the global banking system’s reliance on SWIFT makes this impractical for now.
  • Analogy: Think of CIPS as a regional highway system (for RMB) that connects to SWIFT’s global highway for broader reach. The 80% figure reflects the need to use SWIFT’s roads when CIPS’s network doesn’t cover the destination.
Future Outlook
  • Reducing Dependency: As CIPS grows its participant base (targeting 2,000+ institutions by 2030) and RMB internationalization accelerates, reliance on SWIFT may decrease. Initiatives like mBridge (a blockchain-based alternative) could further reduce dependency.
  • Challenges: Full independence would require global banks to adopt CIPS en masse, which faces hurdles due to SWIFT’s entrenched position, regulatory differences, and geopolitical sensitivities.
In summary, CIPS’s ~80% reliance on SWIFT messaging is driven by the need for global interoperability, not a technical flaw. It reflects SWIFT’s unmatched network reach and the practical realities of integrating with the global financial system.
 
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