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Analysis: China's CIPS cannot rescue Russian banks from SWIFT ban

Alternative settlement system lacks scope of Western counterpart

More than half the world’s cross-border, large payment transactions relied on SWIFT in 2021.   © Reuters

Can China's homegrown mechanism or some other alternative enable Russia to cushion the impact of being cut off from the world's biggest interbank payment messaging system?

While some analysts say China's system will get a boost, many experts argue it does not have the capacity to fully replace the messaging mechanism of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) used by financial institutions around the world for cross-border payments.

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