7 hours agoWhat SWIFT is and why it might be the weapon that causes fear in Putin's heart
Periskopi(4 years ago)
(4 years ago)As the West threatens Russia with unprecedented sanctions intended to prevent President Vladimir Putin from ordering an invasion of Ukraine, there is something greater that seems to cause fear in Putin's heart: the country's removal from the global banking system, writes CNN, translates Periscopi. American lawmakers have suggested leaving [...] in recent weeks.
American lawmakers have been suggesting Russia's departure from SWIFT, a high security network connecting thousands of financial institutions worldwide.
The Russians have responded by saying that shipments of oil, gas and metals to Europe would be halted if that happened.
If Russia is cut off from SWIFT, then we will not receive currency, but buyers, European countries in the first place, would not take our goods oil, gas, metals and other important components,” say from Russia.
What's SWIFT?
The Interbank Financial Telecommunications Society worldwide was founded in 1973 to replace the telex and is now used by over 11,000 financial institutions. He is an essential to global finances.
Russia's removal from SWIFT would make it almost impossible for financial institutions to send money in or out of the country, causing a sudden shock to Russian companies and their foreign customers, especially oil export buyers.
The break would end all international transactions, cause currency instability and cause massive capital output”. /Periscope.
