Researchers' simple plan to work around SWIFT sanctions: use different banks

A paper by researchers at Renmin University formulates a new financial system that would replace SWIFT, and allow for trade even with sanctioned countries.

Larger banks with international exposure are deeply reluctant to do business with countries or companies under sanction, and thereby risk getting kicked out of the SWIFT system, or even having their own reserves frozen or seized. Their solution is to use small banks who are not on SWIFT, and who do not do large volumes of other foreign business.

To further incentivize the banks involved, they would need to generate other business and loans. Researchers suggest that these banks will be providers of economic development and infrastructure loans, such as for new ports, roads, and energy projects.

Resources and links:

China, Russia could bypass barriers to buoy business as Western sanctions bite
https://www.scmp.com/economy/global-e...

Why isn’t China letting Russia take out yuan loans in their ‘no-limits’ partnership?
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