Posted on 02/28/2022 7:06:15 AM PST by xzins
As the United States and its allies have decided to cut Russia's private banks off the SWIFT payment network, the International domain for global financial transactions, China on Monday refused to do the same, citing it has 'no basis in the international law' and reiterated that Russia should resolve the tensions with Ukraine through dialogue and negotiation.
(Excerpt) Read more at m.republicworld.com ...
China wants the yuan to replace the dollar as the world currency.
F CCP
i back whoever china is against, in this case
The next move is for Europe to cut all pipelines with Russia, or face Poland going it alone into Ukraine to fight Russia.
Switzerland has agreed to SUPPORT the sanctions and the banking restrictions. News came out just in the last hour or so.
THAT is going to inflict some pain on Vlad and his rich buddies.
Now think this out... If China wants to replace the dollar as the world’s reserve currency (NEVER HAPPEN), and kicking Russia off SWIFT is supposed to make the dollar not be the world’s reserve currency, why would China be taking this position?
Russia has been preparing for possible sanctions in the form of SWIFT exclusion since 2014. That was when it faced sanctions for annexing Crimea. It has set up a messaging system SPFS (which translates into a system for the transfer of financial messages), which works within the country. There are plans to integrate it with China’s Cross-border Inter-bank Payments System (CIPS). This will facilitate trade between Russia and China.
Chinese media is lousy with glowing reports on Putin, ‘enemy of America’ lately.
It sickening that so many of our elected leaders are in bed with them.
Following the collapse of the Soviet Union in 1991, India had entered into a rupee-rouble trade arrangement with Russia to ensure that defence and other imports could continue. In 2018, a pilot project was run where Indian importers paid in roubles for diamond imports. These payments were made to the Indian branch of Russia’s Sberbank. SBI and Canara Bank have a joint venture (The Commercial Indo Bank), which might be able to help Indians there.
What will be the long-term implications of the ban?
The impact on Russia will depend more on the geopolitical situation. However, the second-order impact would be the development of alternate networks. The decision to restrict Mastercard and Visa to stop processing Russian payments in 2014 led to the creation of regional card networks. The same may happen now with cross-border. Before the pandemic, India, Russia and China were planning an alternative to the SWIFT, using the BRICS platform to launch it. Such initiatives may gain steam.
“China’s financial entities have cut off credit for Russian energy sales, Bloomberg reports, following an avalanche of Western sanctions over Vladimir Putin’s invasion of Ukraine”
China is watching this unfold and doesn’t like what it sees. If they attack Taiwan they too will be isolated from the world.
Duuuh! The US missed the boat when they had the chance to team up with Russia against China. Now, it’s Russia and China teamed up against the US.
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