China and Indonesia Launch Cross-Border QR Payments, Boosting Yuan Internationalization

A new cross-border QR payment initiative has been introduced by China and Indonesia, enabling consumers to utilize local mobile applications such as Alipay (China) and QRIS (Indonesia) for retail transactions in their respective currencies. This initiative aligns with Beijing's strategy to enhance regional financial connections and efforts toward dedollarisation. Alicia Garcia-Herrero, the chief economist for the Asia-Pacific at Natixis, highlighted that this collaboration minimizes transaction expenses and currency risks while facilitating the yuan's global usage. Similar payment systems are already operational in Thailand, Vietnam, Malaysia, and Singapore, and China is expected to broaden these agreements to additional ASEAN countries within this year.