- De-Dollarization Du Jour: Russia Backs BRICS Alternative To SWIFT
by Tyler Durden, www.zerohedge.com
Back in February, Russia detailed a SWIFT alternative that would link 91 domestic banks to the Central Bank of Russia.
On the one hand, the plan represented yet another move towards global de-dollarization but on the other, was borne out of necessity when Russia began to believe it may be expelled from SWIFT as punishment for its support of rebels in Ukraine. Prime Minister Dmitry Medvedev warned of “unlimited consequences” if the West decided on a punitive SWIFT freeze.
Two months later, Moscow would receive a seat on the SWIFT board. Now, Russia is taking de-dollarization a step further by suggesting that a BRICS alternative to SWIFT may be in the cards. RT has more:
The Central Bank of Russia has proposed a discussion about establishing an analogue to the SWIFT global network for transmission of financial information that processes $6 trillion worth of communiqués daily.
The CBR hopes to cut the risks of possible disruptions.
“Seriously speaking, there is no analogue to SWIFT at the moment in the world, it is unique.The only topic that may be of interest to all of us within BRICS is to consider and talk over the possibility of setting up a system that would apply to the BRICS countries, used as a backup,” said Deputy Governor of the Central Bank of the Russian Federation Olga Skorobogatova on Friday.
This comes as Russia (which, incidentally, is the second heaviest SWIFT user) is set to convene a BRICS summit in Ulfa on July 8-9 where the $100 billion BRICS bank will officially be launched along with a $100 billion currency reserve. Much like the China-led AIIB, the BRICS bank is in many ways a response to the failure of US-dominated multilateral institutions to meet the needs of modernity and offer representation that’s commensurate with the economic clout of its members.