SWIFT uses 200 countries and 11,000 banks worldwide. It acts as a mediator in money transfer. It verifies the details of the transaction
The United States and European countries have taken major steps to weaken Russia. Several Russian banks have been barred from using SWIFT. The full form of SWIFT – Society for Worldwide Interbank Financial Telecommunication. This is called SWIFT for short. Russia’s withdrawal from Swift is seen as the most difficult step in the United States and Europe. The decision has embarrassed Russian President Vladimir Putin. Let’s find out what SWIFT is, how much Russia will suffer as a result of staying out of it, how it works.
What is SWIFT?
SWIFT is the largest international payment gateway. Russian banks will no longer be able to use this gateway. The United States and Europe have taken steps to isolate Russia from the international financial system. Their goal is to weaken Russia economically. Putin appears to have been shocked by the decision to oust Swift. That is why he has been warned against using nuclear weapons.
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How important is Swift for Russia?
Swift is very important for Russia. Because Russia is a major supplier of energy to the world. It exports billions of dollars worth of oil and gas to many countries. He uses the SWIFT platform to receive payments. This is a very simple mode of payment. With this, the transaction is completed in real time. The biggest thing is that this platform is considered to be very secure. To be detached from this means to be detached from the financial system. Exclusion from SWIFT means similarly isolating a country from the Internet in the financial world.
How does Swift work?
SWIFT uses 200 countries and 11,000 banks worldwide. It acts as a mediator in money transfer. It verifies the details of the transaction. For this he uses financial messaging services. After verification, the transaction is completed. Swift’s office is located in Belgium. It is monitored by the central banks of 11 major countries. These include Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, England, Belgium and the United States.
How will this move affect Russia?
Experts say that separating Russian banks from SWIFT will have a major impact on the Russian economy. In addition, Russia must use other means to obtain and disburse money to the world. This transaction will take a long time to complete. This will have an impact on Russia’s trade relations with other countries. There will be big problems especially in fuel supply. That’s why the move has had a huge impact on Russia’s currency. The ruble fell 30 percent.
At the moment only a few Russian banks are banned
Currently, only a few Russian banks are barred from using SWIFT. The United States and Europe have not yet included all of Russia’s financial institutions. They believe that if Russia continues its arbitrariness, the rest of its banks and financial institutions will be brought under its control.
