SWIFT Rejects Pressure to Block Russia, Israel From Its Network
Source: Bloomberg
By Jones Hayden Oct 6, 2014 11:25 AM ET
The SWIFT banking transaction system rejected individual calls and pressure to block institutions and countries from its network, saying only governments can make sanctions decisions.
SWIFT and its stakeholders have received calls to disconnect institutions and entire countries from its network - most recently Israel and Russia, the Belgium-based Society for Worldwide Interbank Financial Telecommunication said today in a statement on its website. SWIFT will not make unilateral decisions to disconnect institutions from its network as a result of political pressure, according to the statement.
The U.K. floated the idea of blocking Russian access to SWIFT, the messaging system for most international money transfers, in the run-up to an Aug. 30 European Union summit at which leaders paved the way for tougher EU economic penalties against Russia. The SWIFT idea wasnt considered at the time, according to two European officials.
Any decision to impose sanctions on countries or individual entities rests solely with the competent government bodies and applicable legislators, SWIFT said. SWIFT will not respond to individual calls and pressure to disconnect financial institutions from its network.
Read more: http://www.bloomberg.com/news/2014-10-06/swift-rejects-pressure-to-block-russia-israel-from-its-network.html
ballyhoo
(2,060 posts)but if they try this on Russia there is already a plan in place. SWIFT will become STUPID.
rpannier
(24,329 posts)Is it to arrest another few oil billionaires and confiscate their companies?
The ruble has hit a near two decade low against the dollar. The economy is teetering on recession. Oil prices continue to drop (which adds to the threat of recession and the ruble losing value), their companies can't borrow from US or EU lending institutions because of sanctions and their stock market is dropping.
ballyhoo
(2,060 posts)priced and paid for in currency other than the dollar.
rpannier
(24,329 posts)The Chinese economy is firmly tied with the US dollar. The Arab world and the EU as well.
With oil prices dropping and investors feeling uneasy about investing in Russia it isn't likely to have the effect they'd like
ballyhoo
(2,060 posts)planned for years. Do you really think this entire new SinoRussia pact, which has already established something commensurate to the Fed, was about Russia going it alone? They will drop-kick the dollar like it was a lead weight. Next year.