In recent years, the United States began to impose an embargo on Chinese brands on allegations of espionage. After the invasion of Ukraine, Russia was added to the embargo list. SWIFT Russia, which was removed from the system, started to work on a joint high-security messaging alternative with China.
Society for Worldwide Interbank Finacial Telecommunication SWIFT, called SWIFT, allows banks to communicate internationally. The SWIFT system, which is used for fast money transfer between banks, can also convert currency.
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Russia, which occupied Ukraine, has difficulties in supplying semiconductors, as in every field. However, a new helping hand reached the country.
Russia and China to partner for SWIFT alternative money transfer
Transfers made via SWIFT are processed in dollar terms before the exchange rate. Russia, which wants to reduce the dominance of the dollar, System for Transfer of Financial Messages (SPFS) presented the system to banks in 2014. China in 2015 The Cross-Border Interbank Payment System (CIPS) established the system.
Both systems, which have not been used for a long time, will now start to work under a common roof. The Central Bank of Russia announced that it will keep the names of banks registered in the SPFS system confidential to avoid embargo. under the roof of CIPS 1,280if in SPFS 400 banks is actively trading.
According to Reuters’ report, Russia has started working with China to circumvent the SWIFT ban and contact CIPS. It is among the allegations that India is also considering using SPFS for payments in rubles.
dollar in world trade 88 percent share with the most used currency. China has announced that it will be paid in yuan in trade to reduce the dollar’s influence on trade. Russia also made a similar demand to other countries for natural gas and oil.
Saudi Arabia approved the payment of oil trade with China in yuan in March. It is estimated that other countries will also use yuan in their trade with China in the near future.
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