The impact of financial sanctions on the international monetary system

Xu, Qin; Xiong, Aizong

doi:10.1080/17538963.2022.2118460

Cited by 9 publications

(2 citation statements)

References 3 publications

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“…BNY and other financial institutions across the United States and European countries, which ceased business with Russia in response to the sanctions imposed by their respective governments against Russia in protest of its unprovoked invasion of Ukraine, experienced massive losses over time. The international banking sector is projected to experience a significant decline in revenues over the foreseeable future due to the cutting off of Russia from the global financial system [11].…”

Section: The Impact Of Barring Russia From Using Swiftmentioning

confidence: 99%

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The Implications of the Russia-Ukraine Conflict on International Banking

He¹

2022

BCPBM

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This study analyzes the implications of the Russia-Ukraine conflict on the international banking industry. The study establishes that the economic sanctions imposed on Russia have gravely affected the international banking sector. Primarily, the study highlights that the US government implemented a sanction that prohibits the Central Bank of Russia from using the US dollar for payments. This move has rendered all the reserves by the Russian government and its citizens, which are kept in US dollars worthless and inaccessible, leading to huge losses for domestic and international banks. Moreover, this study outlines that banning Russian financial institutions from using SWIFT has limited the financial payments that are being completed in the global banking sector between Russian consumers and companies, and other merchants across the world. This study also establishes that the withdrawal of services by Visa, MasterCard, American Express, and Paypal from the Russian economy as a protest against Russia’s invasion of Ukraine has led to a decline in revenues for international banks. As a measure to mitigate the adverse implications of economic sanctions on sovereign states in the future, the study suggests the adoption of diverse global payment systems such as CIPS and SPFS, which can cushion the international banking industry against the potential adverse effects of being denied the right to use the world's dominant currencies and the SWIFT messaging system to make payments.

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Section: The Impact Of Barring Russia From Using Swiftmentioning

confidence: 99%

“…The Russia-Ukraine conflict has greatly disrupted the global supply chains [11]. Russian exports are restricted due to the sanctions imposed on her.…”

Section: Reduced Payments For Imports and Exportsmentioning

confidence: 99%