The creation of a new effective system of international settlements is hampered by a number of factors and, first of all, the sanctions fears of friendly countries and partners.
However, if it is possible to create a closed digital system, then the number of its participants will constantly grow. This opinion was expressed by Andrey Kostin, President and Chairman of the Management Board of VTB Bank, at the SPIEF-2023 session “Russian Banking on the Path of Sovereign Development: Regrouping Forces and Moving Up”, which is supported by VTB.
“America is feared, but not loved. Hundreds of countries today secretly, in their hearts, love and support us. But we need to develop really correct systems that would allow today to avoid any direct clashes between these countries, including with the European and American authorities,” Kostin explained, but warned that both the United States and the European Union would put very strong pressure on partners.
Organizational work is no less important, as different countries have different systems. “Everyone has a system for transmitting financial messages – the Chinese have it, and the Indians, and the Iranians. But for them to work all together, you need one protocol so that they can interact and work. Then we will easily abandon SWIFT,” Kostin said.
The new system of international settlements, according to the banker, will allow the Russian economy to function stably, “so that we can successfully make this“ throw ”of the West to the East and South.”
“We do not underestimate,” Andrey Kostin warned. – It sometimes worries me how we very cheerfully report about how good we are. We (the trade and financial system) are not doing very well, we still have a lot to do. If, say, the situation with China is simplified by the fact that we have a balanced trade, then today we have serious problems in settlements with India. They are also solvable, but, in my opinion, they require coordination, unification of internal systems, including the transmission of financial messages, and a number of other issues that can only be resolved at the interstate level or at least at the level of central banks. Such work is being carried out and, I think, we will solve this issue.”
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