**Georgia Denies Plans to Replace SWIFT with China’s CIPS**
The National Bank of Georgia (NBG) has strongly denied claims that it is seeking a replacement for the global payment network SWIFT with China’s Cross-Border Interbank Payment System (CIPS). The denial comes after the NBG’s top official met with the president of CIPS, sparking criticism from former NBG president Roman Gotsiridze.
According to the NBG, such claims are “complete disinformation.” In a statement, the bank clarified that while CIPS primarily handles Chinese yuan transfers, SWIFT covers multiple currencies. The NBG described CIPS as an additional payment method – a regional diversification mechanism – and not a replacement for SWIFT.
The meeting between NBG President Natia Turnava and CIPS President Fu Huang was seen by some as a move to deepen Georgia’s financial ties with authoritarian regimes, including Russia and China. However, the NBG insists that the goal of the meeting was to simplify transactions and increase accessibility between the two countries’ financial systems.
The possibility of Georgia being disconnected from SWIFT was raised in a recent European Parliament resolution, which urged EU member states to consider further restrictive measures against the Georgian Dream government. The resolution aimed to cut off financial flows and sources of income for the regime.
**CIPS: A SWIFT Alternative?**
Gotsiridze, the former NBG president, described CIPS as a “SWIFT alternative” designed to help authoritarian regimes evade sanctions. He claimed that the meeting between Turnava and Fu Huang signaled Georgia’s move towards Russia and China not only through political-economic but also financial fields.
However, the NBG disputes this view, saying that more than 4,900 financial institutions from 189 countries are involved in the CIPS network, many of which also use SWIFT. The bank sees CIPS as an additional payment method, allowing for regional diversification and increased accessibility between financial systems.
**Trade Relations**
Turnava emphasized the importance of trade relations between Georgia and China during the meeting. She said that simplifying transactions and increasing accessibility would support trade between the two countries, which is quite significant. The 9th Session of Sino-Georgian Trade and Economic Cooperation Joint Commission was held in Tbilisi in April, highlighting the growing economic ties between the two nations.
In conclusion, while the meeting between NBG officials and CIPS representatives has sparked controversy, the bank maintains that it is not seeking to replace SWIFT with CIPS. Instead, it aims to simplify transactions and increase accessibility between financial systems for trade and economic cooperation purposes.
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