Researchers' simple plan to work around SWIFT sanctions: use different banks
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- čas přidán 14. 05. 2024
- A paper by researchers at Renmin University formulates a new financial system that would replace SWIFT, and allow for trade even with sanctioned countries.
Larger banks with international exposure are deeply reluctant to do business with countries or companies under sanction, and thereby risk getting kicked out of the SWIFT system, or even having their own reserves frozen or seized. Their solution is to use small banks who are not on SWIFT, and who do not do large volumes of other foreign business.
To further incentivize the banks involved, they would need to generate other business and loans. Researchers suggest that these banks will be providers of economic development and infrastructure loans, such as for new ports, roads, and energy projects.
Resources and links:
China, Russia could bypass barriers to buoy business as Western sanctions bite
www.scmp.com/economy/global-e...
Why isn’t China letting Russia take out yuan loans in their ‘no-limits’ partnership?
www.scmp.com/economy/china-ec... - Věda a technologie
The biggest overproduction of the world is USD.
also overpriced currency.
The USA definitely has an over capacity in dollar printing. And an over capacity in weapon manufacturing.
The US has propaganda overcapacity
Toilet paper
I'm sure US politicians and lobbyists can produce more hot air and lies than the Fed can print greenbacks.
Funny. Just think about it, when swift kicks out the largest trader and largest manufacturer in the world, what is swift going to be? NOTHING!
Zero
Their road to nothing will be swift. 🤣
Swift will just be a graft channel for bribing third world leaders, paying astroturf protestors for color revolutions, purchasing back market arms, you know, the usual CIA bread and butter.
No one want to use dollar if that happen.
Actually China's total international trade amounts to less than 30% of all global trade.
Assuming that not all China's trade is sanctioned and China can choose to use SWIFT for legitimate it's generally cheaper and less risky than not using SWIFT for unsanctioned trades, China's illegitimate, blackballed trades isn't that much. It's a lot and important to China, but it's not overwhelmingly large in global terms..
There is a popular saying in modern China: "There are always more solutions than problems." SWIFT sanction? No problem.
I’m surprised China still keeps so many hundreds of billions in western banks that could be preemptively seized. Imagine what Russia would have used their $300 billion for if they only had realized where things were headed.
CIPS!
China knows this method. They have use the Kunlun bank to pay for Iranian oil for years.
As long as China is willing, it can establish 10000 banks overnight for trade, and play with US for fun. This game can be played continuously.
Human have been trading way before there are currencies. To think that one can stop nations and people from trading with each other by denying access to the medium of exchange is just ludicrous.
No, you don't understand.
Using SWIFT makes trades less risky, less complicated and very quick. Trading without using SWIFT is always possible but there's always the extra chances something will go wrong, a delay in the transaction or a detail overlooked. SWIFT is just the extra convenience that the transaction is going to go through smoothly and exactly as the traders intend.
@@tonysu8860 Take away the convenience and everyone will stop trading? No, they will just find an alternative.
@@tonysu8860 You may be right on this, but, when the SWIFT has been weaponized by the US, what would you do if you were the intended target of being denied access? You sit around? I think it’s unlikely 😂
@@tonysu8860 Even if they put thousands of their best technicians, plus AI help, to make the transaction as efficient as using SWIFT? Trading between 2 nations fully engaged and dedicated is also not as complicated as trading on the whole world market
There's always a way whenever there's a will.
Kevin, thank you for your prayers to seek Lord's help for world 🌎 peace.
This channel needs to blow up. Great content. Necessary content.
it is!! this channel im sure was 14k the other week!!
For sure!
Financial evolution in action.
Inside China bro! Thx a lot for your interesting informations which you bring in form for laymen to understand. BE GOOD BRO!
Thank you for the update. I have been wondering about why they can't just use purpose-built banks to do the swift equivalent work. I also see it can easily be expanded to the central Asia countries, and even further to the ASEAN too.
3:00 Russia has already made the alternative to SWIFT which is called Mir.
Can't be that difficult creating Swift alternative.
On the train going from Malaysia-Thailand border to Bangkok the waiter came to take my order for dinner. He gave me a menu with only Western food. Offended, I asked for a Thai menu but he refused! That only made me more determined to have Thai food and so I had Thai food. Before I even finished half the food, my mouth was numb and steam was rising from my head and I'm not a 'farang'.
Creating a SWIFT alternative is easy, using it and surviving is another story.
@@wlyiu4057 Trying to create it is to create something that would survive the impediments of Western sanctions naturally, and the upside is when it does succeed, the hegemon would have the greatest headache of competing with this alternative system which would be available for the rest of the world.
CIPS already exists, and China already has bilateral currency swap lines with most of their major trade partners, so they could transact in Yuan very easily. China and their partners simply need to price in Yuan or other local currency, and settle in CIPS.
Bank of Kunlun
The US is destroying its own "rule-based international order" 🤣🤣🤣
No one is keen on following it hence they destroying it. 😂😂😂😂
Too right!
Thank you for the analysis you do. Much appreciated. Keep up the good work!
Bilateral trade only requires to settle the net dues to surplus country. If settlement is small it can be treated as a loan with interest . There is no need to settle in US$
Russia and China already have an expanded currency swop agreement in place. Bi-lateral trade flows are pretty even with Russia having a small surplus. This arrangement will be expanded further and very quickly too.
Swift is not voodoo magic. Swift is just a messaging system.
And a very archaic out of date one.
The magic of swift is in clients: literally almost all countries are in there
@@astroganov all controlled by DC. DC can turn off a switch and UK won't be able to transact on swift.
But it was controlled and abused by someone
I’m going to China soon. Finally, I’m going to try the hot and spicy food this trip.
Me too.
Unfortunately not me, don't have a visa yet.
@@adamiskandar5107 Are you in North America? Authentic Chinese restaurants actually exist in cities like LA, Vancouver, NY, SF, Toronto, etc. where there are communities of people having grown up in China. But other people in these cities don't even know these restaurants exist. If you can find them, you can find spicy 🔥🥵 Hunan or Sichuan food that kills you 😜, unless jalapeno is nothing to you.
@@slomo4672 Not quite the real thing. And certainly not as cheap either.
I’m planning to go see pandas 🐼 in Chengdu
Those Duran boys need to have you on their show.
The wild boys are calling
On their way back from the fire
In August moon's surrender to
A dust cloud on the rise
Wild boys
Wild boys
Wild boys
Wild boys
@@antwango One of my favorite song when I grew up.😃
The Duran duo are still too Western and Eurocentric both in their perspective and analysis. Alexander has literally little inkling of what is happening in China, Eurasia or even in East Asia as a whole. The pace of change and development on all fronts in China is staggering and I say this as a frequent business visitor to China. Being holed up in London is hardly going to cut it in terms of what China is all about and not just from a geopolitical analysis perspective.
@@denislim123 Yes! They are useless on China. I remember when the Xinjiang issue was hot They would not even say the name for fear of censorship!!! On Gaza they are also very weak . It seems they only do white people.
@@denislim123 All the more reason to bring someone with experience living and working in China onto their show.
two economies are extremely complementary
I'm glad you upped the volume on the quotes at the end. Always good to hear a positive word these days and they apply to everyone.
Smart idea!
❤❤Kevin, thus it was said to the fair-hearted, when cruel adversity closes the door, there is always a window.. when one gets a swift kick, get out with ones cips 😁🀄️
Great video again. Thanks for the prayer 🙏
Its a matter of logics and physics, when you weaponise the system, the system also gets damaged. Due to lack of proper fundamental STEM education of most American politicians, its a gap too wide to bridge.
Russia is a territorial space where countries can access the huge Chinese market and vice versa. Russia stretches from the Baltic, Black sea and Caspian Sea to the Pacific Ocean.
Just think of the potential for trade. Superhighways and railway tracks.
Great content. The fried rice looks delicious too 😋
Always look forward to your video. Straight to the point.
just another reason to quicken dedollarization.
Chinese banks should voluntarily disconnect from SWiFT, by using only a few government banks that are connected and making all transactions to SwiFT passing through them. This way, chinese banks wouldn't have to worry about being disconnect from SWIFT.
The trade is big enough to set up new bank/entities for specific purposes.
Thank you for your videos. I look forward to your videos everyday. You deserve more subscribers and I'm glad to see it increasing!
Where there’s a will, there’s a way.
you are so knowledgable thank you for sharing
can they use rnb crypto abroad?
Yum! Great report
It ought to be a requirement for members of Congress and the executive branch to watch your videos.
The food looks amazing!
Good explanation on a not so common subject, interesting ending with food too.
Could there be a role for the AIIB to lend RMB for infrastructure projects in eastern Russia and Dongbei?
I see ICB uploads, I click like and I watch, simple as.
Financial Freedom,
Banking Freedom,
Could Be Considered
A General Right
For Mankind!
Once the SWIFT replacement system has been developed between Russia and China using banks that do not use the SWIFT system then the new system could be extended to other countries.
Eventually a parallel system to the existing Western financial system could be developed that is not controlled by Washington.
This new financial system could use a new system of account for both trading and financing purposes. This new system of account would not have to use a physical currency as per the legacy currencies. The existing Eurodollar is a unit of account that does not have a physical currency.
The value of such a currency could maintain its value by being tied to a precious metal such as gold or by having a monetary policy that had a zero rate of inflation target. The later would be difficult to achieve for a single country never mind a group of countries.
Oh how I miss the food in China🥺
You should've explained why the lack of China "debt" is such a problem. Bank settlements are done with debt because 1) purchase of debt repatriates the currency, and 2) settlements using "debt" doesn't disrupts the money supply. Basically national "debt" has no resemblance to business debt. National "debt" should be viewed more as an interest bearing currency used by banks. SWIFT is just a collection of large banks.
You should go on The Duran show 😊
what would SWIFT be without China - not much!
Yum yum..!
If they can't find immediate solution for the swift system, probably they can turn to cryptocurrency for temporary solution. Use the many exchangers to transfer payments using chosen coin. Most probably the stable coins.
SWIFT has doomed itself.
My scalp started to sweat just looking at this food LOLOL
Chinese are just too smart... Too many steps ahead
More like Americans think things are simple
GO is the game
@@linphilip6389 that as well
As hen Americans keep making stooopid mistakes after stooooopid mistakes
They play the long game. And they are overly accommodating and forgiving.
They are giving the SWIFT masters one more last chance, and the power be better smart up, because once the ship sails, it is not coming back. Ever !
American kids eat Tide pods?? i think either out of boredom or nourishment... should tell you something
Can digital currency help ??
You're making me hungry.
As they say that's a spicy meatball for the sanction regime to digest. And we thought they had it all figured out as they headed for the cliff.
What a concept...
Use a "smaller" bank to avoid SWIFT.
As though that hasn''t been thought of before.
This serves well for all parties….. only trade via swift will count for GDP since the others are not traceable. China GDP will then fall….suits the narrative
AWESOME! GO CHINA!👍🙏🐲🐉🐼🌏🇨🇳🙂❗️
my brother, you have done much wonderful works. Using a phone supporter to fix the phone, you will be more easier of expressing.
true , by using non swift local bank , everybody win
if there is a will, there is a way. There are way too many countries want to dedollarize. Non SWIFT banks could exist on their own.
Frontier banks, like in the old Wild West
Invent a bilateral digital crypto currency?
The smaller Chinese banks can take the risk that the Russian buyers may or may not be sanctioned.
Let everyone route trades through a new system to the benefit of everyone.
I think Russia had been unreasonably sanctioned by the USA.
Or just use a different currency and system. Not Fiat money but one based on gold/silver. Is that not what is planned- a BRICs currency and called it the Bancor after Keynes. 🙂
You are the smartest most badass geopolitical brain on YT. I wish we had someone smart as you in the federal reserve. I thought they were coming out with Bricks Pay.
Background voice very distracting with headphones
It is very inappropriate. He is so sensible otherwise. It makes one doubt his integrity and agenda. Subliminal programming is so underhanded.
Not all banks globally are using SWIFT.
Use the china swift system
I can hear mumbling in the background of all your videos.
Please can help me with the list of this little banks already in operations
For these Chinese and russian banks to be profitable they will have to be able to function both in china and Russia only but with full banking and official function in both countries. All services including deposit taking.
How do I convert my fiat dollars to GOLD BRICS?
Probably best just to lump it straight into actual gold, the way it's climbing right now!
Do business in China !
Buy a shovel and a pan.
I love HuNan food！
Or... China can consolidate ALL Dollar trade through ONE Chinese bank on SWIFT. Sanction that bank, and ALL Chinese trade moves to CIPS in Chinese Yuan. China easily afford to use their trade surplus to waive for Global South countries to further accelerate the shift of non-US trade from SWIFT to CIPS. Is the US really willing to risk a massive portion of existing Dollar trade move to Yuan?
just openned bank account with VTB bank in shanghai for my company😛
It would have been so difficult to get private companies in Russia and China to switch to different banks and payment systems without the help of sanctions. Thanks Biden.
Very soon customer will just use another system, why the trouble?
How do most of you guys still make a profit? Even with the downturn of the economy and ever increasing life standards
Well, I picked the challenge to put my finances in order. Then, I invested in cryptocurrency and stocks through the assistance of my discretionary fund manager
Hattie Glover
Interesting, please, how can I get more information? I don't want to remain out of ignorance
Crypto is the best future where people make money and generate good returns.
This is correct, Hattie's strategy has normalized winning trades for me also, and it's a huge milestone for me looking back to how it all started..
The problem for China is not so much as being "kicked out" of the SWIFT system but the freezing and even the robbing of the large USD deposits held by China in most international banks.
It is in China's interest to quickly reduced this USD holding and convert them quickly to "solid assets" such as precious metals, commodities, etc, and store them in Chinese controlled warehouses.
Those holdings are already underwater and to dump them would only further dilute there value.
@@Newlinjim
You probably are referring to the US Treasury bonds with low interest rates that are now trading below par.
The risk is that these bonds may all becomes lower or even zero value if they are not dispose of fast enough as the US fast increasing debts can cause default payment of even the interests, or they becomes ever decreasing value as more fait money are being printed to pay these debts.
Better to cut loss when you can.
@@wmchan44 exactly.
Hot food requires Cold Beer.❤
Just going back centuries on how cross border trades are settled between different countries. GoLD. - Go by Letter of Demand. LOL, just kidding. But seriously, there are many ways to skin a cat (I mean swift)
While we are on this topic, I think the Russian President is in town to refine the tools to avoid using SWIFT. Global South should try to avoid the western payment mechanism as much as possible. You could be next victim after Russia and China. Hope this comment is not deleted by this channel and YT
What is up with the religious sermon audio going on in the background. Makes this guy, who otherwise seems reasonable and cogent, come across as a crank
As long as you have money, how to spend them is a non-issue.
Please leave religion out of the channel. 🙏
US dont need a reason to seize China asset. They just need excuses. China should limit their assets in USD in preparation for counter-seize US asset.
Sanctioned others to your own oblivion. Harm others with selfish & evil intent and you fall into your own snares. Proverb, Bible, Word of God. Not the way to go.
XRP
Try gold
Just dump dollars and euros alltogether to zero
Terrible audio quality
Thanks, Joe Biden, for breaking up the one world order financial monopoly. Even if it's unintentional😂
Overcapacity of the food at the end
Saying "Large Chinese dare not deal with Russia bcos of Swift" and it impacts China Russia trade is just a joke. The idea that a western guy went to beijing to suggest a way round this is even funnier. You don't notice that trade between China and Russia has gone pass $240 billion equivalent? Did they use physical Sea shells to do that trade? hmm I wonder.
Sound quality is trash, like you recorded over something else or have something playing in the background, it almost seems intentional. Last video was the same way, probably why you have so few views and subs, good info, bad presentation.
6
it is so hard to concentrate with that annoying voice in the background. please stop it.
Religious chatter?????
Why don't you work around Xinjiang genocide and talk about Gaza genocide?
the world will be a better place once we all dump the dollar