Français : plusieurs billets de 5000, de différentes monnaies : franc, yen, lire, dollar (Photo credit: Wikipedia)
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) describes itself as, “a member-owned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. More than 9,000 banking organisations, securities institutions and corporate customers in 209 countries trust us every day to exchange millions of standardised financial messages.”
SWIFT is the backbone of global free trade. By means of SWIFT, businessmen in virtually any country can digitally buy or sell products to other businesses anywhere else on the globe. Without access to SWIFT, global trade would be slow, uncertain and difficult.
The US gov-co has recently ordered Iranian banks be denied access to SWIFT until the Iranian government agrees to meet US demands concerning Iranian nuclear weapons. Nations such as India (which are buying crude oil from Iran) are also threatened with restricted access to SWIFT unless they stop purchasing Iranian crude.
According to Bloomberg (“U.S. Wants Iran Oil Buyers to Pledge Cuts or Risk Sanctions”),
“If a country doesn’t prove it’s making the necessary reductions [in the purchase of Iranian crude oil] by the end of June, any institution in that nation that settles petroleum trades through Iran’s central bank will be cut off from the U.S. banking system.”
And conversely, the US banking system (and US dollar) will be “cut off” from any nation that continues to trade with Iran.
The question is: Who needs who?
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