In a first, Russia took a strong & tough decision to hold financial powers in its hands. As of now, United states stands at the top notch over other nations. But this bold decision by Russia could led to drop the dollars to its boots very soon.
Russian President Vladimir Putin has proposed to withdraw the Russian state from the international banking system, moving towards a more traditional gold-based system, agencies reported.
In this approach to hold financial powers, Russia is not alone at all. BRICS nations such as Brazil, India, China, and South Africa are also planning to exit from the international banking system for more financial independence.
However, international banks have been threatening to block Russian access from the online telecommunications and easy money transfer systems internationally if they leave the ‘big club.’
Ewald Nowotny, an economist & policy maker for the European Central Bank highlighted the consequences if Russia is removed from the SWIFT system. International brands conducting business in Russia will be the first to suffer.
Moreover, according to Elvira Nabiullina, former economic advisor to President Putin and the head of the Central Bank of Russia said, “If Russia is removed from the Worldwide Interbank Financial Telecommunications then Russia’s banks won’t collapse at all”.
She briefed how Russian government have devised a new technical system that will continue operations in the SWIFT format and will work as an alternative for the country.
It clearly seems that the power play for dominance by Russia and United States is never ending and these cold war strategies can result to destruction in any sort.