Russians set up method to convert wire currency into Chinese yuan, sparking fears of alliance

[beijingwalker]

Russians set up method to convert wire currency into Chinese yuan, sparking fears of alliance​

Bypassing SWIFT could weaken the overall influence of the dollar as the world's dominant currency​

By Michael Lee | Fox News

Russian state-controlled bank VTB announced that it has set up a system to send money transfers to China in yuan without using the SWIFT messaging system, bypassing international sanctions and sparking more fears of increased cooperation between China and Russia.

"This is yet 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. "By launching the yuan-based transactions with China, Russia is playing into Beijing’s goal of replacing the U.S. dollar as the dominant international currency and medium of exchange by 2049."

VTB's announcement comes as demand for the yuan in Russia has increased since the country's invasion of Ukraine earlier this year, leading to U.S. and western sanctions against Russia aimed at cutting Moscow off from the global financial system.

"Although Russia and China aren’t natural allies, the Biden administration’s policies have pushed these two US adversaries together," Koffler said. "The removal of the Russian banks from the SWIFT and the comprehensive sanctions levied on Russia to punish Putin for waging war on Ukraine may be appealing from the moral standpoint to Washington but they not only impractical, they will have devastating effects on the role of the US dollar in the global financial system over the long term."

VTB CEO Andrei Kostin celebrated that reality, arguing that the move will help Russian businesses work with China instead of trading on the euro or dollar.

"The new reality is leading to a massive rejection of the use of the dollar and the euro in international payments," Kostin said in a statement, according to Reuters. "The launch of the yuan transfer system will significantly simplify the work of Russian companies and individuals with Chinese partners, increasing the popularity of the yuan in our country."

The maximum single money transfer on the new system is set at 20 million rubles, or $328,677, while the monthly maximum is set to 100 million rubles.

The developments of alternatives to SWIFT and the dollar could also have repercussions outside of Russia and China, Koffler warned.

"The unintended effect of the US sanctions policy has been the diminution of confidence among non-Western nations in US dollar as the premier currency of global trade and finance," she said. "Even India is now considering using SWIFT alternatives."

Russians set up method to convert wire currency into Chinese yuan, sparking fears of alliance

Russian bank VTB announced that it set up a system to transfer money to yuan that bypasses the SWIFT messaging system and will allow for greater cooperation with China.

www.foxnews.com

 

[jhungary]

Probably when Russia is out of Sanction.

Right now, with Sanction and Rouble being inflated artificially by Russian Central bank, making Russian Import market virtually non-existence, and Sanction have ate up the rest of Russian export, that wouldn't do much on SWIFT or USD as world dominant currency.

It's more like the Russian HAS to do it in order to survive.

 

[Yongpeng Sun-Tastaufen]

Probably when Russia is out of Sanction.

Right now, with Sanction and Rouble being inflated artificially by Russian Central bank, making Russian Import market virtually non-existence, and Sanction have ate up the rest of Russian export, that wouldn't do much on SWIFT or USD as world dominant currency.

It's more like the Russian HAS to do it in order to survive.

Russia is nobody. Russia is just a Chinese vassal with a tenth of the population and a much smaller talent pool.

 

[beijingwalker]

Russia is nobody. Russia is just a Chinese vassal with a tenth of the population and a much smaller talent pool.

Russia has everything China needs to feed China's insatiable development machine.

 

[MH.Yang]

Russian govt is exchanging gold for CNY at a discount of 30% and also offer an interest rate of up to 8% for CNY account, which is 533% of the interest rate of CNY account of Bank of China (1.5%).

Russian Gold Rerouted to China Amid Western Ban - The Moscow Times

Russia has significantly ramped up gold exports to China as Western governments closed their markets to the precious metal over the war in Ukraine, media outlet RBC reported Friday citing Chinese customs data.

www.themoscowtimes.com

Russia’s VTB Offers Up to 8% Interest Rate for Yuan Deposits

VTB Bank PJSC is offering a Chinese yuan savings account with a maximum interest rate of 8% as the Russian lender faces strict sanctions from the U.S. and U.K. in a push to financially isolate Russia through widening penalties.

www.bloomberg.com

 

[dbc]

Probably when Russia is out of Sanction.

Right now, with Sanction and Rouble being inflated artificially by Russian Central bank, making Russian Import market virtually non-existence, and Sanction have ate up the rest of Russian export, that wouldn't do much on SWIFT or USD as world dominant currency.

It's more like the Russian HAS to do it in order to survive.

Contrary to Mr. Walker's fantasy the Chinese just kicked the Russians off UnionPay.
So much for Russo-Sino solidarity against the evil dollar. When it comes to China we can safely disregard what they say in public and judge them by their actions.

China’s Visa Alternative Cuts Off Russian Banks Over Sanctions – RBC - The Moscow Times

China’s UnionPay paymentsystem has stopped accepting cards issued by Russian banks under Western sanctions over fears of penalties, the RBC news website reported Friday, citing financial industry sources.

www.themoscowtimes.com

https://interfax.com/newsroom/top-stories/82796/

 

[beijingwalker]

Contrary to Mr. Walker's fantasy the Chinese just kicked the Russians off UnionPay.
So much for Russo-Sino solidarity against the evil dollar. When it comes to China we can safely disregard what they say in public and judge them by their actions.

China’s Visa Alternative Cuts Off Russian Banks Over Sanctions – RBC - The Moscow Times

China’s UnionPay paymentsystem has stopped accepting cards issued by Russian banks under Western sanctions over fears of penalties, the RBC news website reported Friday, citing financial industry sources.

www.themoscowtimes.com

https://interfax.com/newsroom/top-stories/82796/

But they are still using it

Russians Getting Cash from Finnish ATMs via Chinese Cards - YLE

Russians have been using Chinese credit cards to withdraw cash from ATMs in Finland since the border restrictions eased on July 1

www.asiafinancial.com

 

[jhungary]

Contrary to Mr. Walker's fantasy the Chinese just kicked the Russians off UnionPay.
So much for Russo-Sino solidarity against the evil dollar. When it comes to China we can safely disregard what they say in public and judge them by their actions.

China’s Visa Alternative Cuts Off Russian Banks Over Sanctions – RBC - The Moscow Times

China’s UnionPay paymentsystem has stopped accepting cards issued by Russian banks under Western sanctions over fears of penalties, the RBC news website reported Friday, citing financial industry sources.

www.themoscowtimes.com

https://interfax.com/newsroom/top-stories/82796/

Well, that's a given. unless UnionPay are willing to accept Potatoes as currency.

Rouble worths nothing outside Russia, China can't spend Rouble in China and they cannot be exchanged for anything, which mean they may as well stock toilet paper in their central bank.

Russia can guarantee only a small amount of Rouble with gold (206 billion IIRC) and that worth nothing even if Russia gave China their entire Gold Stock, and you know what Russia will never runs out of? Dictator and Potatoes.....

 

[renhai]

Contrary to Mr. Walker's fantasy the Chinese just kicked the Russians off UnionPay.
So much for Russo-Sino solidarity against the evil dollar. When it comes to China we can safely disregard what they say in public and judge them by their actions.

China’s Visa Alternative Cuts Off Russian Banks Over Sanctions – RBC - The Moscow Times

China’s UnionPay paymentsystem has stopped accepting cards issued by Russian banks under Western sanctions over fears of penalties, the RBC news website reported Friday, citing financial industry sources.

www.themoscowtimes.com

https://interfax.com/newsroom/top-stories/82796/

wait! You mean the whole world still believes in western countries?

Do you think the whole world will believe the BIG mouth of western countries?

Where is the $600 billion global infrastructure plan?

 

[jhungary]

But they are still using it

Russians Getting Cash from Finnish ATMs via Chinese Cards - YLE

Russians have been using Chinese credit cards to withdraw cash from ATMs in Finland since the border restrictions eased on July 1

www.asiafinancial.com

They are not getting Rouble with UnionPay card tho...Unless Finland ATM now dispense Rouble......

There is something called "Foreign Currency" account. This is different than say Normal Russian try to buy a Tasty, Period Meal in Russia using UnionPay card......

 

[beijingwalker]

Rouble worths nothing outside Russia,

They can buy oil, gas, copper, timber , coal , food....they can buy everything China really needs.

 

[jhungary]

They can buy oil, gas, copper, timber , coal , food....they can buy everything China really needs.

Again, as I said before, unless UnionPay started accept Potatoes as currency.

Your copper company can't really spend "oil" if they take it as a payment in lieu of cash, your mining company would need to adjust their business model and build Oil Refinery to process those oil before they can be used. And I am sure as hell there are going to be protest if you start paying your miner Russian oil in lieu of payment...

 

[beijingwalker]

Again, as I said before, unless UnionPay started accept Potatoes as currency.

Your copper company can't really spend "oil" if they take it as a payment in lieu of cash, your mining company would need to adjust their business model and build Oil Refinery to process those oil before they can be used. And I am sure as hell there are going to be protest if you start paying your miner Russian oil in lieu of payment...

China now uses rouble to pay for Russian oil and gas, soon EU will have to do it too.

China agrees to pay for Russian gas in rubles | Upstream

Decision is seen in Moscow as a political victory in the country’s growing stand-off with Western nations

www.upstreamonline.com

 

[Viet]

Russian govt is exchanging gold for CNY at a discount of 30% and also offer an interest rate of up to 8% for CNY account, which is 533% of the interest rate of CNY account of Bank of China (1.5%).

Russian Gold Rerouted to China Amid Western Ban - The Moscow Times

Russia has significantly ramped up gold exports to China as Western governments closed their markets to the precious metal over the war in Ukraine, media outlet RBC reported Friday citing Chinese customs data.

www.themoscowtimes.com

Russia’s VTB Offers Up to 8% Interest Rate for Yuan Deposits

VTB Bank PJSC is offering a Chinese yuan savings account with a maximum interest rate of 8% as the Russian lender faces strict sanctions from the U.S. and U.K. in a push to financially isolate Russia through widening penalties.

www.bloomberg.com

That’s expected. Putin will sell everything cheaper to China, India and the rest in Asia. Oil, gas, coal, grains, fertilizer, gold, diamond. It’s like big garage sale.
In return Putin expects anti west rhetoric and cheap propaganda from China, India and the rest in Asia.

 

[beijingwalker]

Putin will sell everything cheap to China, India and the rest in Asia. In return Putin expects he gets anti west rhetoric from China, India and the rest in Asia.

We are more anti west than Russia, in this regard we don't need incentives.