Russia’s SWIFT alternative faces uncertain future

Significance Settlements would be made in rubles and rupees, using the cross-currency exchange rate, which excludes the US dollar as a reference currency. However, Russian efforts to facilitate cross-border payments face growing pressure from US sanctions. Impacts Non-sanctioned Russian banks will continue to rely heavily on SWIFT for continued access to the global financial system. Large Russian financial institutions will continue developing private SWIFT alternatives in parallel with the SPFS. The persistent threat of US secondary sanctions will deter non-US banks with extensive international operations from using the SPFS.