Mar 16, 2022, 22:13

Wed, 16 Mar 2022 22:13:51 +0000
cips, beijing, swift, economy, china, russia

Content warning: Could Russia evade Western sanctions, benefiting China? | DW News

Due to international sanctions against the country, #Russia's central bank can't access its foreign reserves of 640 Billion dollars. Ratings agency Fitch says it's at risk of default as a series of debt payments comes due. The Russian government has announced to make payment in rubles, but that would not be accepted on a dollar-denominated bond. If Russia can't make the full and correct payment within thirty days, the country would be considered in default.

Meanwhile, #China says the impact of sanctions on Russia will have a limited effect on its own #economy. With regards to facilitating trade with Russia after the country's exit from the #Swift global payment system. #Beijing is offering a workaround using the Chinese #CIPS system although it can only process payments in Yuan. The Chinese government also promises support for financial markets to keep them stable amidst ongoing crises.