Wednesday, February 15, 2012
SWIFT to Ban Iran
Prodded by the U.S., the European Union may ban Iran from SWIFT, the Society for Worldwide Interbank Financial Telecommunication. SWIFT is the world-ex-U.S. equivalent of Fedwire and CHIPS combined, carrying wire transfers between most of the largest banks in the world. CHIPS in the U.S transfers over $1 trillion a day, SWIFT even more? Any institution banned from SWIFT would have a hard time moving money around and paying for things. Smugglish lots of cash in suitcases is not easy, so this is the ultimate sanction that will have a real effect.
Subscribe to:
Post Comments (Atom)
Iran could be all about the dollar (petro dollar) and economic war with China. It may have nothing to do with the current Propagating. Iraq was the exact same excuse and did not have weapons of blah blah blah. Iraq priced its oil in Euros.
ReplyDeleteIran will continue to have friends, and those friends will continue to buy its oil. More importantly, you can bet they won't be paying for that oil with US dollars. Rumors are swirling that India and Iran are at the negotiating table right now, hammering out a deal to trade oil for gold, supported by a few rupees and some yen. Iran is already dumping the dollar in its trade with Russia in favor of rials and rubles. India is already using the yuan with China; China and Russia have been trading in rubles and yuan for more than a year; Japan and China are moving towards transactions in yen and yuan.
And all those energy trades between Iran and China? That will be settled in gold, yuan, and rial. With the Europeans out of the mix, in short order none of Iran's 2.4 million barrels of oil a day will be traded in petrodollars.
http://www.marketoracle.co.uk/Article32815.html