Economic & Industrial

America`s insistence on disconnecting Swift with Iran casts off the global financial system

America`s insistence on disconnecting Swift with Iran casts off the global financial system
Mining News Pro - The American New York Times, referring to the US government`s decision to disconnect Swift with Iran, wrote: If the Trump government wants to take action against Swift, it should act cautiously, as the swift threat of global financial system collapses.
  Zoom:

According to Mining News Pro -Donald Trump`s foreign policy has hit a deadlock in the heart of the global financial system.


Tramp went out of Iran`s nuclear treaty this year and rescinded suspended sanctions against Iran, which put sanctions on companies and western banks tough choices. If they deal with Iran, they will lose access to the market and the US financial system. Certainly, companies and banks will cut off their ties with Iran or stop their plans for investment in this country. But there remains an important financial connection with Iran: the financial messaging service plays an important role in transferring money in the international banking system.


This messaging system is operated by a Belgian company called Swift, and is used by all banks in the world and plays a major role in the flow of money around the world.
As the next wave of US sanctions targeting financial transfers, Swift is under pressure from Washington to cut off its relationship with Iran but has not yet done so. The time is coming to an end and the sanctions will begin on Nov 4.2018


The tramp must now make difficult decisions. It can continue its rigorous process and penalize Swift and the banks and individuals connected to it, but this will crush the situation of the major financial institutions relying on Swift. Swift`s importance can not be ignored as it connects more than 11,000 banks in more than 200 countries, and no other organization can quickly take it.


But if Swift is allowed to continue to communicate with Iran, the Iranian government can use it to transfer money to and from the country. The EU can also maintain Iran`s nuclear treaty.


The Tramp National Security Advisor has taken a tough spot on sanctions in Iran. "The executive authorities of institutions such as Swift should ask themselves whether trading with Iran is worth the risk," he said last month.


But the US Treasury Secretary, who is responsible for imposing sanctions, has set a deadline to enforce them and has not given any comment on how to deal with Swift. He was scheduled to discuss the sanctions against Iran and Swift with EU officials at the World Bank and IMF Summit in Bali.


European energy companies have close ties with Iran, but they do not want to endanger their trading in the United States. Switzerland is the same. From Swift`s point of view, the deal is very dangerous in Iran because the Iranian banks do not have enough of international rules and standards. Swift cut off ties with Iran in 2012 following sanctions against Iran.


But for Swift leaders, the current situation is different. In 2012, both the United States and the European Union, both boycotted Iran and Swift should obey.


Today, the European Union is trying to maintain its trade and financial ties with Iran and is actively trying to neutralize American policies against Iran. Swift fears that his relationship with the European Union would be jeopardized if he obeyed the United States.

The European Union is working on a special payment system to trade with Iran.
Therefore, if the Trump government wants to take action against Swift, it must act with caution. SWIFT threat threatens global financial system.


   Short Link:  
Related News
Esfahan Mobarakeh Steel co.
HOSCO
khuzestan steel
chadormalu Co.
ghadir neiriz co
IranAluminaJaajarm
sangan steel
ahan o fulad golgohar