China will start an international payment system for its currency this year, Yi Gang, head of China’s State Administration of Foreign Exchange (SAFE), confirmed on Tuesday.

“We plan to launch it this year,” Mr Yi told news agency Reuters.

The China International Payment System (CIPS) aims to facilitate international usage of the yuan, replacing a patchwork of existing networks. Its goal is to make it faster and easier to carry out cross-border trade, investment and transactions using the yuan, bringing it a step closer to becoming a global trading currency.

Reuters had reported on Monday that China aimed to launch this new payment system as early as September or October.