SWIFT Russian Ban Could Force Fed to Step In, Credit Suisse Says
- Ukraine war has led to sanctions on Russia’s biggest banks
- EU approves ban on transactions with Russian central bank
This article is for subscribers only.
The decision to exclude various Russian lenders from the SWIFT messaging system could result in missed payments and giant overdrafts within the international banking system and spur monetary authorities to reactivate daily operations to supply the market with dollars, according to Credit Suisse Group AG strategist Zoltan Pozsar.
Pozsar published a note Sunday examining the consequences for money markets of the decision to take some lenders off SWIFT, which facilitates trillions of dollars of international payments between institutions.