SWIFT+Cuts+Off+Iran


 * SWIFT Contemplates Cutting Off Iran** - David Gilmour

http://youtu.be/k0g6KlTfr0c

Summary:

SWIFT is a global banking network that serves as an international medium of communication for banks. In order for a bank to have an international financial transaction it must submit an initial request through SWIFT to another member bank. There are 15 million of these international transactions through SWIFT a day. The Belgian group that is responsible for SWIFT is currently considering cutting Iranian banks off from the system, as a response to the growing nuclear threat. Many experts believe that this would cripple the Iranian economy, because it would force all Iranian banking institution to make international transactions with cash. SWIFT has stated that they won’t take any action until the European Union and the United States determine what action should be taken.

Two primary controversies have arisen from SWIFT’s threats to cut Iran off the system. This first controversy is surrounding whether or not it would be economically responsible remove Iran from the network. Iranian banks use the SWIFT network an estimated 2.2 billion times a year for international financial transactions. Restricting these transactions would not only cripple the Iranian economy, but it could have an impact on the world economy. Additionally, there are fears that the Iranian government would cut off oil through the Straits of Hormuz. This would eliminate 20% of the world’s oil supply and cause oil prices to increase exponentially. The second controversy is whether or not a financial institution should have the ability to regulate international trade for different countries. Many believe that it grants too much control to a single not regulatory institution.

Question: Do you feel that it is responsible to cut Iran off the SWIFT even with the potential international economic complications? Should a private non-regulatory body have the ability to control foreign trade on a grand scale?