Nairobi: The Governor of the Central Bank of Libya, Naji Mohammed Issa, and the Governor of the People's Bank of China, Pan Gongsheng, agreed Saturday to connect Libyan commercial banks to China's payment and settlement system. According to Anadolu Agency, the Central Bank of Libya announced on its website that Issa, during his visit to Beijing, met with the Governor of the People's Bank of China on Friday. The meeting focused on reviewing the volume of trade between the two countries and exploring ways to enhance and grow it. The statement emphasized the importance of launching a new phase of genuine strategic partnership between the two central banks. An agreement was reached to integrate Libyan commercial banks into China's Cross-Border Interbank Payment System (CIPS), which is designed to simplify financial transfers and make transactions more straightforward. CIPS, initiated by the People's Bank of China in 2015, facilitates international transfers using the Chinese yuan. It provides infrastructure fo r banks to conduct yuan-denominated transactions directly, thereby reducing reliance on the US dollar by removing the need for intermediary banks. The statement further mentioned that the two sides agreed to overcome existing obstacles and streamline trade procedures to boost trade volumes between Libya and China. The initial step involves implementing direct money transfers to China, which will simplify transactions for small-scale traders. Additionally, both parties agreed to permit the opening of letters of credit directly through Chinese banks. Plans were also made for an official Libyan banking delegation, led by the Central Bank governor and accompanied by directors of Libyan commercial banks, to visit Beijing and engage with their Chinese counterparts as soon as possible. The statement highlighted that the intended visit aims to foster cooperation between commercial banks in both countries and leverage China's experience in electronic payments and direct financial transfers. These measures are expec ted to reduce reliance on the informal market, ensure adherence to anti-money laundering and counter-terrorism financing standards, and enhance the reputation of Libya's banking sector.