Russian Central Bank Responds To Western Financial Sanctions

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The Central Bank of Russia said on the 27th that Russia has the necessary resources to maintain financial stability.

The Central Bank of Russia issued a statement on the same day saying that Russia has the necessary resources and tools to maintain financial stability and ensure business operations in the financial sector. Russia will guarantee the flow of cash and non-cash in rubles of various banks. The Russian banking system is stable, with sufficient capital and liquidity, and all banks in Russia are currently functioning normally. In addition, the Russian side will use the local version of the Financial Information Transmission System (SPFS) to complete related business.

In response to Western sanctions, Russia’s central bank developed the SPFS system in 2014. According to statistics, there are currently 23 foreign banks connected to the SPFS system. As of May 2021, 20% of transfers within Russia are done through the SPFS system.

The United States and other Western countries issued a joint statement on the 26th, excluding some Russian banks from the Society for Worldwide Interbank Financial Communication (SWIFT) payment system, and imposing restrictions on the Russian central bank to prevent its allocation of international reserves to weaken the impact of sanctions.