“Central Bank of Russia launches SWIFT alternative for domestic payments” [Link]
I don’t know a lot about international money and especially electronic transfers.
I tend to think about money as what is in my wallet.
Why is it that there is always a lot of month left at the end of the paycheck anyway?
The boss (SWMBO) used to work for a long defunct American Bank so understands all about this international claptrap. Especially how SWIFT works.
So when Russia declared that “CBR launches SWIFT alternative for domestic payments” [Link] the comment was “Russia is getting themselves all independent”.
So I’m sort of wondering, WHEN RUSSIA gets this system running INTERNATIONALLY, and the BRICS group start using it exclusively, how big a blow would that be to the West’s financial systems?
After all BRICS are now trading across borders in their local currency and thus already shutting out the USD. China is actively pushing the YUAN as an alternative world currency, so I’m thinking it’s only a matter of time before the West’s financial system goes “KABLOOIE”. After all what’s the point in the USD if the rest of the world is using the YUAN or local currency?
Way I read it this was always on the cards just not so quickly.
BRICS were doing a fine job of endlessly talking about things because they couldn’t seem to agree on the time of day right up until the Ukraine thingy happened. Then suddenly the West got all nasty and pushed the point thus speeding up Russia’s timetable. From there I suppose it was a short hop to BRICS thinking “We can do this!”
Was it the UK that said Russia should be locked out of SWIFT?
Ahh yes it was:-
The U.K. will press European Union leaders to consider blocking Russian access to the SWIFT banking transaction system under an expansion of sanctions over the conflict in Ukraine, a British government official said. [Link]
It’s a well-known fact that the chimp in charge of the UK (Cameron) doesn’t do anything without a script provided by the US government BUT I was sort of hoping that the FINANCIAL world would show a tiny bit of intelligence, pat Cameron on the head, and tell him to keep taking the pills.
SWMBO said that was a stupid move. SWIFT thought so too and I think they just ignored Europe YET it did cause a bit of a ripple and I suppose this is the result of all that.
After all this was said recently:-
“The exclusion of Russian banks from the Swift network would have wider-ranging repercussions, with serious consequences for international trade flows and transaction banking operations.” [Link]
And all because the US kept prodding the bear.