Iran To Avoid US Sanctions By Bypassing SWIFT, Ditching Dollar In Trade Transactions

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Above Photo: CC BY-SA 2.0 / Ensie & Matthias / Central Bank of Iran, Tehran

The international SWIFT network banned Iranian banks from its system soon after the US imposed sanctions against the country in November 2018. The ban was preceded by Washington’s threats to slap sanctions on the financial network too if it were to continue working with the Islamic Republic’s financial institutions.

Iranian Central Bank (CBI) head Abdolnaser Hemmati said in a statement on 18 September that the country is planning to evade American economic sanctions by switching entirely away from the dollar to national currencies in mutual trade and by bypassing SWIFT. Such steps have been discussed with Turkey and Russia.

“Accordingly, we are moving toward using alternative payment systems and conducting our business through national currencies”, Hemmati said.

Separately, the CBI chief said that his country has issued a proposal to Russia to use alternative payment systems in trade with the entire Eurasian Economic Union (EAEU), of which Iran became a temporary member in 2018. He noted that such measures would effectively render SWIFT useless for the country.

SWIFT, an international messaging network for communications between banks, announced its ban on Iranian financial institutions soon after the US targeted them with sanctions in November 2018. The network said that this was done in order to preserve the “global stability of the system” and that the decision was preceded by Washington threatening to impose sanctions on SWIFT itself if it would not cut ties with Iran.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT)

The US imposed sanctions against the Iranian economy’s energy, banking, and shipping sectors following its withdrawal from the Joint Comprehensive Plan of Action (JCPOA) – a 2015 accord that lifted international sanctions from the Islamic Republic in exchange for the latter limiting its nuclear programme. Washington also threatened to impose sanctions against any entity dealing with Iran, including from the EU.

In a bid to preserve the deal with Iran, the European Union developed a special mechanism called INSTEX that would allow for conducting business with the country without falling under US sanctions. However, Tehran was not entirely satisfied with it as it failed to alleviate Iranian oil trade issues. Iran has called on Brussels to improve INSTEX, threatening to abandon the JCPOA. In May 2019, Tehran began to gradually roll-back on its commitments under the accord, citing the lack of progress in improving the INSTEX mechanism.

  • Infarction

    The bully-boy tactic of using the SWIFT system to punish recalcitrant nations for not toeing the US line is another example of the blind giant shooting itself in the foot. The imbeciles that are in charge of an illegitimate government continue their rash policies without considering the unintended consequences.

    The likes of Trump and Pompeo whose stupidity and greed are the remnants of failed neoliberalism and its handmaiden austerity. The entire US government is riddled with turds that continue to float in the toilet even after the rest of the waste is flushed away.

  • Steven Berge

    Good to see resistance to the global central banking scheme. The new world order punishes countries after they have been loaded down with illegitimate debt by the world bank, IMF, etc. John Perkins book “The New Confessions of an Economic Hit Man” explains how this is done. A few quotes to bring into focus the mentality of the banksters:

    Famous Sir Josiah Stamp Quote:
    “Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits.”

    ~ Sir Josiah Stamp
    (1880-1941) President of the Bank of England in the 1920’s, the second richest man in Britain

    1933 – Articles of impeachment presented in the U.S. House of Representatives against the Federal Reserve Board of Governors, the Officers and Directors of the Federal Reserve Banks, the US Secretary of Treasury and others for their collusion in causing the Great Depression

    US Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, introduced the Articles of Impeachment. McFadden stated,
    “The Great Depression was not accidental; it was a carefully contrived occurrence… bankers sought to bring about a condition of despair here, so that they might emerge as rulers of us all.
    “We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders, which prey upon the people of the United States for the benefit of themselves and their foreign customers….The truth is, the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly, which operates the Federal Reserve Board.
    Speaking at the Commencement Address of the University of Texas in 1927
    Ref: The Legalized Crime of Banking (1958) by Silas W. Adams

    2009 – Comment by Illinois Senator Dick Durbin – banks own Congress
    “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.