Several Russian banks have been banned from the international payment network SWIFT by the invasion of Ukraine, hampering their efforts to move money out of Russia.
A messaging system developed by the Russian Central Bank –Financial Message Transfer System (SPFS)– should allow the flow of national interbank traffic. However, it is limited in terms of the timeframes, size and complexity of the transactions it can process.
Another possible option is to connect to China’s CIPS payment platform. However, it can only be used to settle payments in yuan.
“In order to eliminate the risks associated with maintaining turnover, it is necessary to establish cooperation between the financial messaging systems of Russia and China,” said Anatoli Aksakov, head of the financial committee of the Duma (lower house) of the Russian Parliament.
“I know work is being done on it,” he explained. “Our central bank is cooperating with the People’s Bank of China (PBOC) and I believe that the current situation will stimulate the relevant processes.“.
Aksakov said that trade between Russia and China increased by more than 40% in January-February and that this relationship should grow.
The Russian Finance Ministry has stated that Moscow will use Chinese yuan from its foreign exchange reserves after the inability to access dollars and euros.
Source: Ambito
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