Russia's VTB launches transfers in Chinese yuan bypassing SWIFT

[Eugene]

Source: Reuters

Russia's VTB launches transfers in Chinese yuan bypassing SWIFT

Tue, September 6, 2022 at 6:31 AM·2 min read

MOSCOW (Reuters) - VTB said on Tuesday it had become the first Russian bank to launch money transfers to China in yuan without using the international messaging system SWIFT that underpins financial transactions globally.

Demand for the yuan in Russia has increased since Feb. 24 when Russia sent tens of thousands of troops into Ukraine and the West imposed sanctions against Moscow, limiting its access to the dollar and euro markets.

The sanctions on major Russian banks, including state-controlled VTB, have effectively cut lenders off from the global financial system.

"The new reality is leading to a massive rejection of the use of the dollar and the euro in international payments," VTB CEO Andrei Kostin said in a statement.

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Read more: https://news.yahoo.com/russias-vtb-launches-transfers-chinese-103117956.html

[Bayard]

1. Russia and China

Getting too cozy for my comfort level.