Perhaps over the past eight years, you have noticed how from time to time information pops up that financial institutions of the Russian Federation can be disconnected from the SWIFT system of payments. It is this topic that I want to discuss in this article.
It should be understood that such a decision may entail a number of problems that are fraught with the consequences for the entire state. And in particular, it will negatively affect people who are related to investment and finance.
First of all, the disconnection of the SWIFT system can lead to severe complication, or even to full paralysis of international calculations.
Small and medium business exported products will face a slowdown in transactions. And even large structures that are vulnerable to liquidity risks and violations in payment timing, can also lose significant budgets, or even go bankrupt.
Also this kind of scenario can lead to currency shock. Because of what the key rate will increase. As a result, the devaluation of the ruble will contribute to an additional increase in the price of imported products. And this, in turn, will lead to an increase in the risk of inflation.
Even among the negative consequences, I can allocate the fact that foreign investors will start selling Russian securities, and this will lead to essential replies of the stock market. Banks will lose major amounts, and along with them private investors will suffer.
Here I want to recall that in the Russian stock market, a record number of investors appeared in 2020. Unfortunately, as the practice shows, the majority does not have a strategy, nor the plan and on their free financial advice, we help build your personal financial plan, discuss your goals and resources, how and where you can invest exactly.
Experts are also convinced that systematic failures in the work of banking payment systems (visa and mastercard) will be inevitable. Problems with international translations, reducing transactional activity and the need to look for alternatives, will contribute to the fall in profits and increase expenses in parallel.