Nabiullina supported the idea of creating an international settlement hub bypassing SWIFT
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Elvira Nabiullina, Chairman of the Bank of Russia, positively assessed the idea of creating an international depository hub. She stated this on the sidelines of the Financial Congress of the Central Bank of the Russian Federation. Earlier at the event this idea voiced Head of VTB Andrey Kostin.
“As for the creation of an international depository hub, I think this is a very good idea. The specifics should be discussed together with the market, together with partners, whether there will be interest in creating this hub,” Ms. Nabiullina told reporters. According to her, this idea is very productive for the development of the international capital market. Mr. Kostin suggested creating an alternative international depositary settlement hub that would replace Euroclear and Clearstream. According to him, the hub can be located in one of the countries of the Persian Gulf.
The head of VTB also suggested creating an alternative to the SWIFT international financial messaging system and developing new tools to raise capital. Andrey Kostin’s initiative is already supported Head of the Supervisory Board of the Moscow Exchange Sergey Shvetsov.
In March, the Central Bank decided to disable SWIFT from transfers within Russia, the decision will take effect from October. Financial messages will need to be “transmitted through their own banking systems or services of third-party Russian companies, as well as through the financial message transmission system of the Bank of Russia.” According to ROSSWIFT, almost 20 Russian credit institutions are now disconnected from SWIFT.
Read more in the publication “Kommersant” “SWIFT is disconnected from the inside”.
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