The value of the ruble has plummeted following access restrictions placed on several Russian banks to the SWIFT global bank payments system. But as this financial door closes, another door might be opening to keep the Russian economy afloat while it continues its invasion of Ukraine: The Chinese alternative to SWIFT, known as the Cross-Border Interbank Payment System (CIPS).
How CIPS Works: CIPS was launched in 2015 as a platform to globalize the use of Chinese currency through a clearing and settlement services system. CIPS is backed by the People's Bank of China and enables financial institutions to enable cross-border transactions in the Chinese currency.
