China’s SWIFT alternative may undercut US sanctions

[Viper27]

Russia is poor if compared to the west. Putin makes his country poorer. To put in perspective Russia trades with China is less than Vietnam trades with China.

It’s justified to strangulate Putin economically he must feel the pains.

Putin took charge of a bankrupt state which today has foreign reserves of more than $600 billion.

 

[dy1022]

USA is also a major grain exporter. The biggest condition of the trade war truce given by trump to China is to ask China buy more American food. China's grain reserves now account for 60 +% of the world's grain reserves, which was forced by trump.

no no no, it's 高筑墙，广积粮，缓称王。

 

[dbc]

Indeed. On top of crude oil takers like you've listed, China being world's largest refiner might help Russian oil indirectly flow to a lot more countries in form of refined products. US sanction is self-defeating joke.

World's top 5 oil exploration & production companies:

1. Saudi Aramco (world's 1st largest explorer, 4th largest refiner @ 3.6 million b/d)
2. Sinopec group (world's 1st largest refiner @ 6.14 million b/d)
3. PetroChina (world's 2nd largest refiner @ 4.83 million b/d)
4. Kuwait Petroleum Corporation
5. Royal Dutch Shell

Top 10 Exploration and Production Companies of the world - Insights - Energy Dais

Here is the list of ten leaders of the oil exploration and production companies of the world which stood the test of the times.

insights.energydais.com

don't be silly, the supply chain for the top 10 E&P firms you list is dominated by western firms. Starting with upstream seismic exploration to drilling, well construction and production. Everything from drill bits to drilling fluids to slurries to BOPs to downhole sensors, IOTs, lifts and the software for modelling the reservoir, optimizing production or simulation of fluid / gas flows.

Post Crimea 2014, US embargo was limited to unconventional and deep sea technologies.
If the scope of sanctions is expanded it will have an impact on Russia's ability to produce oil/gas ..never mind shipping it to China to be refined.

 

[FuturePAF]

Where is your sources?


Russia's biggest wealth is the unrivaled natural resources on this planet, they are way valuable than hurriedly printed dollars.

Will Russia now be paid in Yuan for their oil and gas? For which it can buy goods from China. Should we expect the value of the Yuan to rise now?

Can China replace all the inputs Russia needs to maintain and modernize its oil and gas industry?

 

[MH.Yang]

Will Russia now be paid in Yuan for their oil and gas? For which it can buy goods from China. Should we expect the value of the Yuan to rise now?

The exchange rate of CNY against the US dollar has appreciated from 6.4605 to 6.3016. You're too slow.

 

[FuturePAF]

The exchange rate of CNY against the US dollar has appreciated from 6.4605 to 6.3016. You're too slow.

It’s only the start, especially after today’s announcements of additional sanctions on the Russians. I’d expect the Yuan to continue to appreciate past 6:1 to the dollar soon enough.

 

[MH.Yang]

It’s only the start, especially after today’s announcements of additional sanctions on the Russians. I’d expect the Yuan to continue to appreciate past 6:1 to the dollar soon enough.

Stable appreciation is acceptable. Such rapid appreciation is not in China's interests.
The Chinese govt will not allow the uncontrolled appreciation of CNY, and the intervention measures of the Chinese govt will come soon.

 

[lcloo]

My personal experience:-

More than 10 years ago, I send some money from Bank of China (Malaysia) to my personal account in Bank of China (Hongkong). I think this was the time when China's version of SWIFT has not yet been implementated.

I was expecting a cheaper bank commission charge because I was sending money from one Bank of China branch to another, but the service lady told me that they have to first send the transaction to New York and then re-route to Hongkong. And that means I have to pay for the charges and currency exchange difference for MYR to USD, and then from USD to HKD:-

I had to pay:-
a) Local harges from Malaysian Ringgit to US Dollar, this being the charges and FX rate difference payable to BoC in Malaysia, and

b) Overseas charges from US Dollar to Hong Kong Dollar, this is fees paid to an American bank in New York for their service and FX rate difference for sending money to BoC in Hong Kong.

SWIFT enable the West and USA to control global monentary transactions, and now they are turning it into a political sanction weapon. And SWIFT is also a monoploy tool (in most countries) where the Western and US banks make huge money thorugh their banking services.

SWIFT also means you have to convert your local currency to USD first before converting to a 3rd currency, making US dollar a global currency which help US to control most of the world.

It was rediculous that sending money through the branches of Bank of China, I was not allowed a direct BoC (Malaysia) to BoC (Hong Kong) transaction, but have to go through a US bank in New York. But this was the reality when the global banking system ws control by SWIFT.

That there is an alternative by China is mostly welcome as it breaks the West's monopoly, good not only for countries but also for small street people like us.

 

[Zibago]

They'll be fine. It's Europe that needs to worry about $7 BTU for natural gas.

Exactly and those egging on Ukraine to resist are going to be the reason for its downfall

Ukraine cant resist Russia for long they need to come to a compromise

 

[mingle]

Exactly and those egging on Ukraine to resist are going to be the reason for its downfall

Ukraine cant resist Russia for long they need to come to a compromise

Agree with U sad but a reality

 

[Viet]

You can google the Russian news of the past few years.

The Russians have long sold all US debt, they bought a lot of gold and shipped it back to Russia.

Russians are not fools, they were ready for sanctions years ago.

Moreover, Russia's overseas assets are also concentrated in China. For example, in July 2021 alone, Russia transferred $10 billion and £ 2.1 billion from western countries to the Bank of China. That should be Russia's last fund to stay in the West. That news can be obtained by Google.

I read that.
That means Putin has prepared for this war in cold hand for years. All rhetorics of peace are lies. Putin is a war criminal.

 

[Viet]

Putin took charge of a bankrupt state which today has foreign reserves of more than $600 billion.

The sanctions now make him impossible to withdraw the money.
Putin wants glory but he turns Russia to a pariah state. He bankrupts russia. He throws all the efforts of his country in the last decade into the next trash bin.

 

[MH.Yang]

I read that.
That means Putin has prepared for this war in cold hand for years. All rhetorics of peace are lies. Putin is a war criminal.

The transfer of Russian property from the west is a financial defensive act, not an offensive act. Russia's early transfer of funds to China can only prove that Russia does not trust the west, so it has taken financial defense action. That does not prove that Russia has long planned the war.

The sanctions now make him impossible to withdraw the money.
Putin wants glory but he turns Russia to a pariah state. He bankrupts russia. He throws all the efforts of his country in the last decade into the next trash bin.

Now that you know through Google that Russian funds have long been transferred from the west to China, what are you doing with this useless nonsense?
If SWIFT is really willing to give the world's largest resource country to China's financial system, we are very grateful.

 

[Viet]

My personal experience:-

More than 10 years ago, I send some money from Bank of China (Malaysia) to my personal account in Bank of China (Hongkong). I think this was the time when China's version of SWIFT has not yet been implementated.

I was expecting a cheaper bank commission charge because I was sending money from one Bank of China branch to another, but the service lady told me that they have to first send the transaction to New York and then re-route to Hongkong. And that means I have to pay for the charges and currency exchange difference for MYR to USD, and then from USD to HKD:-

I had to pay:-
a) Local harges from Malaysian Ringgit to US Dollar, this being the charges and FX rate difference payable to BoC in Malaysia, and

b) Overseas charges from US Dollar to Hong Kong Dollar, this is fees paid to an American bank in New York for their service and FX rate difference for sending money to BoC in Hong Kong.

SWIFT enable the West and USA to control global monentary transactions, and now they are turning it into a political sanction weapon. And SWIFT is also a monoploy tool (in most countries) where the Western and US banks make huge money thorugh their banking services.

SWIFT also means you have to convert your local currency to USD first before converting to a 3rd currency, making US dollar a global currency which help US to control most of the world.

It was rediculous that sending money through the branches of Bank of China, I was not allowed a direct BoC (Malaysia) to BoC (Hong Kong) transaction, but have to go through a US bank in New York. But this was the reality when the global banking system ws control by SWIFT.

That there is an alternative by China is mostly welcome as it breaks the West's monopoly, good not only for countries but also for small street people like us.

Nonsense
Swift is just a messaging system. No real money flowing from one account to another. No US dollar is involved if transferring not in USD, in your case from ringgit to HK dollar. The BoCs in Malaysia and HK just compare the balance and correct the sum.

 

[mike2000 is back]

Russia is finished no matter how this war plays out. Putin gives up the West and surrenders the fate of his country into the hands of Beijing.
Why I say that? Yes unfortunately China is big winner Vietnam is finished too. Russia will stop delivery weapons or submarines to us. We will become slaves. Very regrettable.

Russias has its own interests vis a vis eastern Europe to look after, so Vietnam doesn't figure in that. For one Vietnam interests now align more with the US than Russia. However , that doesn't means Vietnam won't keep its ties with Russia and keep buying weapons from Russia. Russia is still Vietnam's largest military supplier by far and it will remain that way for a long time, barring a major geo political change in Vietnam. And all this despite the fact that Russia and China are on good terms.
In fact the irony is that Russia still has an upper hand in its ties with China(though things might change with time), since Russia can sell its weapons to China's enemies/adversaries like India , Vietnam etc, but China usually abtains from doing so towards Russia's adversaries/enemies. I'm sure if Ukraine wanted to buy weapons from China for example, China won't agree to sell them so as not to offend Russia. But Russia can do so and they have been doing so for decades towards China.

The transfer of Russian property from the west is a financial defensive act, not an offensive act. Russia's early transfer of funds to China can only prove that Russia does not trust the west, so it has taken financial defense action. That does not prove that Russia has long planned the war

That means you underestimate Putin, he was the former head if KGB Soviet unions top spy agency after all. So he comes from a military and intelligence background. He has an advantage over leaders who come from a political/diplomatic/engineering background
like China, US,UK , France, Japan, Germany and powers with whom Russia has to contend with day to day. So Putin has an advantage here when it's comes to geo strategic and geopolitical games given his background advantage .
So for you to think that Putin didn't plan for this invasion for a while justifies my point. If you really think he just woke up one morning and decided to invade Ukraine, then I can only hope that your leaders are more knowledgeable than you in this field. Else China will have a tough time dealing with its geo political opponents (Russia included). Lol