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Russian state-controlled bank VTB declared that it had set upSystem toSend money transfers toChina in yuan, without using SWIFT messaging system. This allows for the bypassing of international sanctions sparkingMore fears ofEnhanced cooperation between China, Russia
“This is just another example.” of the growing Russia-China strategic partnership,” Rebekah Koffler, a former DIA intelligence officer and the author of ”Putin’s Playbook: Russia’s Secret Plan to Defeat America,” told Fox News Digital. Russia is playing a major role in the Chinese-yuan-based transaction. into Beijing’s goal ofU.S. dollars are being replaced by the dominant international currency currencyMedium of”Exchange by 2049″
VTB’s announcement coincides with an increase in demand for the Russian yuan since Russia’s invasion ofUkraine in April of this year. toU.S. and Western sanctions against Russia were intended to cut Moscow out of the global financial system.
China has however stepped in upIts partnership with Russia toHelp fill the void.
PUTIN RELEASES FOREIGN DOCTRINE BASED ON ‘RUSSIAN WORLD DOCTRINE’
Vladimir Putin, Russian President, shakes hands ChineseXi Jinping is the counterpart
(REUTERS/Evgenia Novozhenina/Pool)
“Although Russia and China aren’t natural allies, the Biden administration’s policies have pushed these two US adversaries together,” Koffler said. “The removal ofRussia’s banks are exempted from SWIFT and all the sanctions placed on Russia toPunishing Putin for his war against Ukraine might be morally appealing toWashington, but they are not only impractical, but will have devastating consequences for the role ofThe US dollar in the global finance system over the long-term.”
Andrei Kostin, CEO of VTB, celebrated this fact, arguing that it will allow Russian businesses to work with China rather than Russia. ofTrades on the dollar and euro
“The new reality leads” to a massive rejection ofUse ofKostin stated that the dollar and euro are international payments in a statement. to Reuters. “The launch ofThe yuan transfer system will greatly simplify the work ofRussian individuals and companies with ChinesePartners, increasing the popularity ofThe yuan is in our country.”
Maximum single money transfer in the new system: setThe monthly maximum is 20 million rubles or $328,677. set to100 million rubles
President Joe Biden
(Reuters)
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These developments ofOther options toSWIFT and dollar could have external repercussions as well ofKoffler warned of Russia and China
“The unintended result ofThe US sanctions policy has been the reduction ofThe US dollar is the preferred currency for non-Western countries. currency of”Global trade and finance,” she stated. “Even India is considering SWIFT alternatives.”
Fox News writer Michael Lee. Follow him @UAMichaelLee
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