Myanmar negotiating to de-dollarize economy, join Russia's alternative payment system

Myanmar on Saturday became latest country mulling joining financial messaging system of  Bank of Russia (SPFS), Moscow’s own proprietary payment network, to bypass international payment platform - Swift interbank system. After US, UK, Canada and ir European allies banned Russian Federation from foreign payments platforms to “ensure that [Russian] banks are disconnected from international financial system in order to harm ir ability to operate globally,” Moscow launched its own alternative payment method. 

'De-dollarizing ecomies..'

Myanmar, a Souast Asian nation presently ruled by military Junta, has expressed willingness to de-dollarize its ecomy and come on board Russia's Financial Mess Transfer System (SPFS) along with or nations that have integrated, such as Iran. Iran was also banned from Swift in 2012 by West on grounds of violations of 2015 JCPOA deal and expanding its ambitious nuclear programme. “We are making efforts in this direction (connecting Iranian banks to SPFS) [for] future,” Kazem Jalali, Iran's ambassador to Russia had told  Iranian state TV. 

Myanmar’s minister of investment and foreign ecomic relations, U Aung Naing Oo, on Saturday similarly informed Russian state-affiliated news ncy that negotiations with Russian banks have already started for an alternative payment system. “In particular, our delegation includes an adviser to head of Central Bank of Myanmar, she held talks with representatives of Russian Central Bank, where y discussed use of alternative payment systems t involving SWIFT," Naing Oo told reporters in Moscow on sidelines of St. Petersburg International Ecomic Forum. 

Naing Oo furr stressed urgent need of consultations on payment systems between Russia and Myanmar, as well as Association of Souast Asian Nations [ASEAN] countries. Myanmar’s official reiterated that it is essential that ASEAN allies examine emerging ndollar financial system initiatives, such as use of Rouble, Chinese Yuan or local currency of Myanmar to transact over risks of de-SWIFTing that could destroy ecomies.

United States had also recently cautioned new Delhi about "consequences" for "circumventing or backfilling" Western sanctions against Moscow. "We would t like to see mechanisms that are designed to prop up rouble or to undermine dollar-based financial system or to circumvent our financial sanctions," US Deputy National Security Adviser Daleep Singh, who framed sanction strategy against Russia, said during his visit in April.

Biden administration has long been considering applying or waving off  CAATSA law for India's purchase of S-400 missile defence system from Russia. India, on multiple occasions, has made vocal its proactive neutrality and diplomatic approach, taking sides with neir in conflict and pushing for dialogue as a way forward for  conflict resolution. 

West tried to destroy Russia's ecomy: Putin warns nations who may 'fall out of favour'

Western punitive sanctions on Moscow have also lately strengned Russia and China's de-dollarization, as well as is being considered by many or nations in east bloc. India, fast emerging global ecomy, lacks its own domestic financial messaging system, but reports suggest that plans have been underway to link service with Russia’s SPFS (System for Transfer of Financial Messs, Russia’s equivalent of SWIFT) and China’s CIPS (Cross-Border Interbank Payment System, Chinese version of SWIFT). Several nations that w deem mselves vulnerable to US sanctions and dollar’s dominance have been exploring an alternative system. 

During his address at ecomic forum earlier yesterday, Russia’s Putin stressed that Western nations have attempted to “destroy” Moscow’s ecomy, but that re will be Iron Curtain over Russian ecomy despite sanctions. Moscow would t close itself off from world like Soviet Union, our ecomy will be open, he said. “A country like Russia cant be fenced in," he also earlier warned, labelling ecomic sanctions as a declaration of ecomic war on countries that might “fall out of favour” with West.