The world is preparing hard to abandon SWIFT

The United States of America continues to gradually give up its position as the sole superpower. The danger loomed over the international cross-border payment and transfer platform SWIFT, based on the use of the dollar. Leading economic Powers are preparing alternative systems and are no longer afraid of the US threat of disconnecting from SWIFT.

Formally, SWIFT is a European organization registered in Belgium. But since 2011, the “Belgian cooperative” has been under the hood of Uncle Sam, who is very curious to look into other people's wallets. Earlier, Iran was disconnected from the SWIFT system as part of the international isolation program. They started talking about similar measures in relation to the Russian Federation after the events of 2014. Apparently, such prospects did not inspire Beijing at all, and in Brussels no one is delighted with the annoying “guardianship” of the United States.

In 2008, a single Euro Payments Area (SEPA) was created in Europe. This system in the conditions of the financial crisis was designed to provide savings when moving capital in the European economy. SEPA was not able to completely replace SWIFT, but it became an additional tool for economic security of the European Union from its “overseas cousin”. Actually, at the moment, Europeans are working hard on yet another system of international payments, which is designed to completely eliminate dependence on SWIFT.

In Russia, the development of a domestic analogue of SWIFT began already in 2014 due to the threat of disconnecting banks from a US-controlled financial instrument. It is called the financial messaging system (SPFS). In 2017, the head of the Central Bank Elvira Nabiullina said that SPFS is ready to ensure the reliable functioning of the Russian financial system in the event of new American sanctions. More and more customers in our country are connecting to SPFS, one of its advantages is the lower cost of service than in the western counterpart.

But that is not all. In 2015, China launched its own counterpart to SWIFT called the Chinese International Payment System (CIPS). It is believed that this is the most serious competitor to the Western system. So far, its scale is not comparable: for example, last year through CIPS transactions worth $ 13 billion were carried out per day, and through SWIFT - by 6 trillion. But Beijing has a huge trade account surplus, unlike the United States, and has allocated an unlimited limit to its own payment system. The Chinese have provided their customers with direct access to finance around the clock.

The result was not long in coming: importers of Chinese goods began to purchase them through CIPS per yuan even with a liquidity shortage. It turned out to be so beneficial that China’s eternal rival, Japan, joined the system. They are also trying to keep up with them in Russia. The representative of the Central Bank of the Russian Federation said:

A number of (Russian) banks are already connected to CIPS, which simplifies the routing of payments.

So far, the Chinese analogue of SWIFT takes into account the yuan peg to the dollar, but in the future this can be abandoned, for example, in favor of the gold equivalent. Then the situation with the American currency will not be very good.
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  1. Port Offline Port
    Port April 8 2019 12: 16
    Do not bend under a variable SWIFT,
    Better he bend under us.
  2. Monster_Fat Offline Monster_Fat
    Monster_Fat (What's the difference) April 8 2019 12: 17
    "Leading economic powers", firstly, support all US sanctions against the sanctioned countries (nonsense, about allegedly bypassing sanctions for Iran over oil, please do not repeat, there is a hackneyed barter and only in exchange for a humanitarian component). Secondly: they have a large trade component with the United States and therefore, no such disconnection from SWIFT threatens them. In addition, no CIPS and so on will help Russia. The United States, forced all Chinese banks that provide global trade transactions to join the SATSA protocol, that is, to confirm their accountability to American control authorities for the implementation of transactions with sanctioned countries and persons. Therefore, if there is a suspicion that a Chinese bank is working with a country, or a company, or a person included in the sanctions list, this bank will automatically be excluded from the list of banks that can work with the United States, etc. Given the colossal trade and financial turnover of China with the United States, Chinese banks will never go to work with sanctioned countries, etc. So, no such "alternative" SWIFT systems will help Russia.
    1. sgrabik Offline sgrabik
      sgrabik (Sergei) April 9 2019 10: 25
      This is all a temporary phenomenon, I do not think that such a situation will continue forever. The United States, with its huge and constantly growing external debt, also has certain risks and problems that could bring the US economy below the baseboard in the foreseeable future.
    2. gorbunov.vladisl (Vlad Dudnik) April 9 2019 18: 11
      ... no CIPS, etc., will help Russia ...
      ... no such "alternative" SWIFT systems will help Russia.

      What will not help?
      These are just financial instruments.

      nonsense, about allegedly circumventing sanctions for Iran over oil, please do not repeat, there is a balcony barter and only in exchange for the humanitarian component

      He put China on sanctions. The main consumers of Iranian oil are China, India and South Korea.
  3. Marzhecki Offline Marzhecki
    Marzhecki (Sergei) April 8 2019 12: 38
    Quote: Monster_Fat
    So, no such "alternative" SWIFT systems will help Russia.

    They will not help us, they will help others.
  4. Bakht Offline Bakht
    Bakht (Bakhtiyar) April 8 2019 12: 42
    Society for Worldwide Interbank Financial communication channels (from English Society for Worldwide Interbank Financial Telecommunications (SWIFT), pronounced SWIFT) is an international interbank system for transmitting information and making payments.

    This is just a communication channel. Information can be transmitted by teletype, fax, in the end by mail (you can do a pigeon). Disconnecting from the system makes transactions more difficult and increases the transaction time. But does not cancel payments. In the end, for oil, gas, wood, metal .... you still have to pay.

    No money no honey
    1. Pishenkov Offline Pishenkov
      Pishenkov (Alexey) April 9 2019 12: 21
      I completely agree here - international trade used to work somehow without SWIFT and ... oh my god ... without the Internet and software, it’s not clear how, but it worked wink so in the worst case scenario it will work.
      And if about other systems, then any presence of competitive alternatives will sooner or later bring down the monopoly. As for the EU, the Russian Federation or the PRC, then with the shutdown, problems are possible not only with external transfers, but even within countries or blocks. In the EU, for example, most countries buy the same Airbus aircraft for themselves for dollars. Nonsense, of course, but it is. And inside the Russian Federation and China, such transactions are still enough, but something needs to be done urgently.
  5. Syoma_67 Offline Syoma_67
    Syoma_67 (Semyon) April 9 2019 21: 36
    The US continues to gradually give up its position as the sole superpower

    - I wonder who made this diagnosis.
    1. Pishenkov Offline Pishenkov
      Pishenkov (Alexey) April 10 2019 12: 45
      They diagnosed themselves with their idiotic behavior, and in accordance with it the disease progresses ... The diagnosis was made by the fact that the allies were turned into vassals. The fact that they can compete only with the help of sanctions. The fact that fewer people around the world are looking at them with lust and admiration. There may still be fear from the loss of monetary relations, profits, a large market, but there is no respect left ... Yes, and this market is not the same, the purchasing power of the Americans was the highest in the 80-90s of the last century, and then in real life steadily declining ... And the fact that promoting values ​​around the world, from freedom of speech and the rule of democracy to market relations, they themselves live directly in spite of all this ...
  6. Monster_Fat Offline Monster_Fat
    Monster_Fat (What's the difference) April 10 2019 20: 50
    As I see it, no one understands the essence of the problem. The problem is not SWIFT at all, the problem is banking sanctions. Disconnecting from SWIFT involves blocking any operations with Russian banks, companies and individuals under sanctions and automatic sanctions against those who cooperate with them. And this SWIFT is actually a light bulb. No teletype or other translations here will help. Western and Asian banks will simply refuse to conduct any business with Russia, which many of them are already doing now.
    1. Alexander Otenko (Alexander Otenko) April 11 2019 12: 36
      It’s good to think that you own the essence of the problem. In my opinion, the essence of the problem is the trust of one bank to another, and this gives rise to trust in transactions between them. If they used to trust gold coins, then they trusted the financial power of the United States. But everything is changing, confidence in the dollar is falling and not what SWIFT will not help. And to keep the United States less and less willing.
    2. Pishenkov Offline Pishenkov
      Pishenkov (Alexey) April 11 2019 14: 31
      If you remember, long before the existence of SWIFT and the other delights of globalization, there were international embargoes on the USSR and other little pleasant things about our country. But the USSR was still conducting international trade, and those in the West who continued to work with him, no matter what, earned huge fortunes from this ... Don’t worry, there would be a product and a buyer, but you can always agree on what next .. ..
    3. Bakht Offline Bakht
      Bakht (Bakhtiyar) April 11 2019 20: 43
      And how do they pay for the goods?
      Suppose the United States purchases an RD-180. And what, they will not pay? Or there are reports now that LNG carriers are going to the States. Is free? Or Chinese and European banks will not pay for the supply of oil, timber, steel .....
      There is no product without payment. I hope no one argues with this? They will not do business with Russia, they will close their production facilities. This is called "scared the hedgehog with his bare ass"