(ANSA) – ROME, March 01 – The exclusion of Russian banks from the Swift system and the freezing of foreign exchange reserves left the Central Bank of Moscow “the possibility of resorting to alternative international payment channels, such as China’s Cips, but for a moment we are in the realm of theory”. This is what Mario Cimenrio, a professional investor and columnist contacted by Ansa, claims, “China appears to be wary, possibly fearing indirect sanctions from the West that would put relevant economic and financial interests into practice. Cips (Interbank Cross-Border Payment System) is SWIFT’s competitor is in China, and it is settled in renminbi. It is home to 1,200 domestic financial institutions from 100 countries, of which about 20 are Russian. The renminbi affects world trade by about 2% compared to about 40% of the dollar”: According to Seminerio, “even if we assume that there is triangle with China, Russia would continue to suffer from severe operational limitations, as well as the cost of what would be a major subjugation to Beijing’s economic and financial power.”
He states that “Western sanctions against Russia were aimed at carrying out a converging action. On the one hand, the exclusion of major Russian banks from the SWIFT messaging system, which supervises cross-border money transfers; on the other hand, the prohibition of the availability of foreign exchange reserves of the Central Bank of Moscow.
On the one hand, pending operational details, it is clear the Western intention to continue securing energy supplies from Moscow by sterilizing the possibility of these funds being spent by the Central Bank of Russia, for example to defend the ruble. (ANSA) It is not yet clear whether Putin will decide to suspend energy supplies to Europe to try the final tightening.
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