Just a couple of years, expelling a country’s participation in the SWIFT bank messaging system serving the trans-Atlantic financial system, was often referred to as “the nuclear option” to bring a rebellious country back into line. Today, country after country is considering voluntarily abandoning the SWIFT system and replacing it with other, friendlier option for certain categories of transactions.
For example, the Reserve Bank of India (RBI) is reportedly considering using Russia’s System for Transfer of Financial Messages (SPFS) messaging system to replace SWIFT for rupee-ruble transactions, which have grown dramatically as Russia has responded to Western sanctions by turning East. RT reported that Business Line cited a source familiar with India’s discussions about Russia’s SPFS: “There have been meetings between senior officials from the RBI and some public sector banks with their counterparts in Russia on the country’s proposed alternative messaging system for banks. There is a view in the RBI that the proposal is doable.… For national currency trade settlements and quick pay to be more efficient, it is important to have a new transaction facilitating mechanism.… Direct settlements in national currencies will not only help in de-dollarization but also lead to cheaper, quicker and more efficient transactions.”