Russia and China Near Replacement of SWIFT, says Business Regulator : Analysis

Moscow and Beijing are working on a system of settlements that could facilitate cross-border transactions without relying on SWIFT, as revealed by Russian Presidential Business Rights Commissioner Boris Titov. The two countries are accelerating efforts to use their national currencies for trade instead of SWIFT. Regional banks are increasingly adopting the Chinese payment system CIPS for transactions in yuan. Russia has been promoting its SPFS interbank messaging system as a reliable alternative to SWIFT since many Russian banks were disconnected from the Western network in 2022. This shift to using rubles and yuan for transactions has significantly boosted Russia-China trade, with bilateral trade volume in 2023 reaching $240 billion. Additionally, investment cooperation has seen several projects implemented in both countries through the Russian Direct Investment Fund.

Analysis:
The article discusses Moscow and Beijing’s collaboration on developing a settlement system to facilitate cross-border transactions without relying on SWIFT. The information provided is based on statements from Russian Presidential Business Rights Commissioner Boris Titov. The article highlights efforts to use national currencies for trade and mentions the increasing adoption of the Chinese payment system CIPS by regional banks for transactions in yuan. It also mentions that Russia has been promoting its SPFS interbank messaging system as an alternative to SWIFT and the positive impact of using rubles and yuan on Russia-China trade, with bilateral trade volume reaching $240 billion in 2023. The article further notes investment cooperation between the two countries through the Russian Direct Investment Fund.

The credibility of the sources, in this case, the statements of Boris Titov, should be evaluated to ensure the accuracy and reliability of the information presented. The article seems to provide a factual account of the efforts being made by Russia and China to establish a settlement system that reduces dependence on SWIFT and promotes the use of their national currencies. However, it is important to consider potential biases in the information provided. The article does not mention any potential challenges or risks associated with this shift away from SWIFT or the impact on the international financial system.

Given the current geopolitical landscape and the increasing use of misinformation and fake news to shape public opinion, it is crucial for readers to critically evaluate the information presented in such articles. As geopolitical tensions and economic strategies continue to evolve, there is a need for accurate and balanced reporting on international relations and financial developments. Misinformation or biased reporting on such topics can influence public perception and decision-making, highlighting the importance of verifying sources and seeking multiple perspectives to gain a more nuanced understanding of complex geopolitical issues.

Source: RT news: Russia and China ‘close’ to replacing SWIFT — business regulator