(Bloomberg) — China’s central bank could provide a financial lifeline to Russia if Beijing decides to buck Western efforts to cut its strategic partner out of the global financial system.
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The People’s Bank of China has a multi-billion dollar currency swap with Russia’s central bank, allowing the two nations to provide liquidity to businesses so they can continue trading. China has also signed Russian banks onto its homegrown payments settlement system, seen as an alternative to the SWIFT messaging system, which many Russian lenders will be banned from using.
It’s unclear whether that support will be forthcoming though, with the PBOC yet to disclose how it will respond to the Russia sanctions. It didn’t reply to faxed questions on Monday for more detail, including on the status of Russian foreign exchange reserves or the currency swap line. China is…
