Russia and China bypass SWIFT – Deputy Prime Minister – RT Business News
Trading partners have boosted transactions in national currencies, says Aleksandr Novak
Moscow and Beijing are developing a settlement system that could enable cross-border transactions without using the Western financial messaging system, SWIFT Deputy Prime Minister Aleksandr Novak revealed on Tuesday.
Both countries have reportedly accelerated their efforts to move away from the US dollar and euro in favor of settlements using national currencies.
“In gas contracts, we are already moving to settlements in national currencies – in rubles and yuan – on a parity basis. Supplies of petroleum and petroleum products, as well as coal, are also shifting towards payment in national currencies,” he explained.
According to Novak, this could help avoid financial risks and facilitate the transformation of the ruble and the yuan into global reserve currencies. « In this regard, the Central Bank of Russia and the People’s Bank of China are working on the possibility of opening accounts for Russian companies in China and vice versa, creating a settlement system without using SWIFT », says Novak.
Russian President Vladimir Putin previously called for new independent financial platforms for international settlements, stressing that the global economy should be more open and impartial.
Moscow has promoted its own national payment system as a reliable alternative to SWIFT since many of the country’s banks were disconnected from the Western financial network earlier this year.
Russian President calls for alternatives to SWIFT
Russia’s SPFS interbank messaging system was created in 2014 and has similar functionality to SWIFT. It ensures the secure transfer of financial messages between banks inside and outside the country.
In April, Russian Central Bank Governor Elvira Nabiullina said most Russian lenders and 52 foreign organizations from 12 countries had access to SPFS. The regulator added that it would keep the identities of members of the payment system secret to protect them from possible secondary sanctions from the United States and its Western allies.
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