Global South Explores Alternatives to SWIFT Amid U.S. Sanctions and Conflicts

Countries in the Global South seek alternatives to SWIFT amid U.S. sanctions and wars, exploring CBDCs and regional systems like CIPS and SPFS.

Editorial Desk

September 20, 2026 One Min Read

POLICY WIRE — New Delhi, India — As global conflicts intensify and U.S. financial sanctions reshape international trade, nations in the Global South are increasingly looking for ways to bypass the SWIFT system for cross-border transactions.

The BRICS Summit in New Delhi highlighted efforts to boost trade among member states using national currencies and central bank digital currencies (CBDCs). Despite challenges, initiatives like the mBridge project and China’s CIPS are gaining traction as viable alternatives to traditional payment systems.

📄 POLICY WIRE WHITEPAPER PUBLISHED: PAKISTAN’S NATIONAL SECURITY POLICY PRIORITIES

👉 READ BY CLICKING HERE

Russia has developed its own financial messaging system, SPFS, to circumvent Western sanctions, while Iran’s SEPAM connects with Russian banks. India and Russia have established a robust bilateral trade mechanism using local currencies, now accounting for nearly all of their trade. Meanwhile, China’s CIPS continues to expand, processing billions of yuan in daily transactions.

Reporting by Policy-Wire (PW)

Author

Editorial Desk

Policy Wire is your go-to editorial hub for insightful perspectives and informed analysis on pressing policy issues, both regionally and globally. Over the years, Policy Wire has collaborated with leading international news agencies—including AFP, AP, Reuters, and others—to provide fact-based reporting and nuanced commentary. With a commitment to clarity and credibility, we aim to bridge the gap between complex policy debates and public understanding, ensuring that our readers stay informed on the issues shaping the world today.