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This video is brought to you by noa an audio app that i really enjoy where you can listen to articles from the world’s leading financial publications. click the link in the description the world imposed a raft of economic sanctions on russian banks and oligarchs on thursday but one punishment that many analysts
Ejecting russia from the swift international western leaders appear to be split on whether russia should be removed from swift, and its ability to trade internationally. what it would mean for russia to be ejected. swift stands for society for worldwide interbank financial telecommunication and you can think of
Global provider of secure financial messaging financial institutions in more than 200 countries but it moves the information about the money. 2016 when hackers capitalized on weaknesses billion dollars from their account with now, swift is headquartered in belgium, and while sanctions can be imposed by any country in
The world, swift doesn’t get to choose which sanctions to follow. it is incorporated under belgian law and so is required to comply with eu regulation, being cut off from swift is being put but it wouldn’t prevent russian banks from carrying out cross-border transactions, it would just make them a lot more
Difficult. foreign dealings would rely on the use of less-efficient getting thrown out of swift, would be like losing access to the internet for a financial system. while communication would be slower and more difficult, it would still be possible. in the short term there would be chaos as russia’s banks
Would be left without a way to communicate with the rest of the world, but recovery is not ability to collect international profits from its oil and gas exports, which account for more the sanctions on russian state banks are possibly more severe than any swift cut off, russia’s $635bn in hard currency reserves will
Help to shield this blow, but a lot of russian stabilize the ruble and some are in foreign banks. the banking sanctions prevent russia from making any transactions in u.s. dollars, and freeze any dollar-denominated assets or liabilities held the ecb began warning european lenders international sanctions against russia
Over a month ago, asking for details of how the banks would handle different scenarios, such as a move to block russian banks from accessing swift. international banks with large russian exposure according to the ft international banks, have about $121 bn in assets owed to them from russian entities to foreign
Banks, according if russia was cut off, they wouldn’t be the first country. in 2012, the european council, under pressure from the united states, expelled iran’s banks from swift. the effects were immediate and devastating— demonstrating the power of swift over international banking, as well as how a new era
Had emerged where global banking infrastructure could be transformed into political weapons. over the longer term while iran was unable to pay for imports or accept payments for exports, being cut off from swift would not prevent russian significantly more costly and difficult. cutting russia off from swift was first
Discussed back in 2014, when russia annexed crimea and backed separatist forces in eastern ukraine. swift would be equivalent to a declaration of war. at the time it was estimated that such a move could reduce russia’s gdp by 5% in a year. it was also pointed out that cutting russia off from swift would have ramifications
For other nations as well, since russia is a key energy supplier to europe and countries there rely on the swift the bank of russia started its own financial but that system has struggled to attract users and mainly handles domestic transfers, spfs has the us backed away from the threat of banning russia from
Swift in mid-february after dangling in the news, european leaders were worried that such a move would mean that the billions of dollars in outstanding loans to russia would not be repaid. the economist estimates that european banks have nearly $56 billion owed to them by billion worth of eu assets reside inside
Russia. and that cutting access could backfire by forcing russia to find alternatives including banning russia from swift would have significant the current package of coordinated sanctions against russian banks will possibly do the this situation in ukraine is truly terrible, days. my thoughts are with
Anyone affected. thanks for watching and talk to you soon. bye.
Transcribed from video
What Does Being Cut Off From SWIFT Mean For Russia? By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2022-02-25T051524+0000endTimestamp2022-02-25T052431+0000}
