SHANGHAI, Sept 29 (Reuters) – A central bank digital currency trial focused on cross-border transactions has been completed, the Bank for International Settlements (BIS) said, with participation from Chinese state-owned banks as Beijing tries to internationalize its digital yuan.

More than 160 cross-border payments and foreign exchange transactions totaling more than $22 million were made in the first trial involving four central bank currencies and real-value transactions, the BIS said in a statement.

This development comes as the US dollar appreciates against other currencies and triggers capital outflows from emerging markets, threatening their economic health.

The BIS-developed Central Bank Digital Currency Bridge (mCBDC) test included China, Hong Kong, Thailand and the United Arab Emirates and was designed to provide real-time cross-border payments and settlements, less expensive and safer, the BIS said.

Bank of Communications said it and four other Chinese banks have completed the mCBDC Bridge trial to settle corporate customer payments.

State media reported on Thursday that the Industrial and Commercial Bank of China and the Agricultural Bank of China were among the 20 participating commercial banks.

China has been testing its digital currency in major cities, primarily for domestic retail payments, although the central bank has also pledged to explore cross-border digital yuan payments.

The world’s second-largest economy has said it is willing to discuss setting global standards for digital fiat currency as the international monetary system develops.

Russia, sanctioned by the West for its war in Ukraine, has announced plans to use its own digital currency to trade with China.

Reporting by Jason Xue and Brenda Goh; Editing by Jamie Freed

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