US and allied – including European Union (EU) – sanctions against Russia and Belarus followed their illegal invasion of Ukraine. Otherwise, banks of importing and exporting countries would need accounts in each other’s currencies in their respective countries in order to settle payments. Many parties use USD accounts to settle dollar-denominated transactions.

Joint ownership was supposed to avoid involvement in geopolitical disputes. The system sends over 40 million messages daily, as trillions of US dollars (USD) change hands worldwide.Ĭo-owned by more than 2,000 BFIs, it is run by the National Bank of Belgium, together with the G-10 central banks of Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the UK and the US. It links 11,000 banks and financial institutions (BFIs) in more than 200 countries. Anis ChowdhuryĬreated in 1973, and launched in 1977, SWIFT is headquartered in Belgium. Thus, it enables the smooth and rapid transfer of funds across borders. The instant messaging system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) informs users, both payers and payees, of payments made. The growing number of countries threatened by US and allied actions is forcing victims and potential targets to respond pro-actively. SYDNEY and KUALA LUMPUR, Jun 14 (IPS) - US-led sanctions are inadvertently undermining the dollar’s post-Second World War dominance.

Swift share global payments system