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Abstract

messages about money transfers and other transactions.It’s said to be the backbone of the international financial <a href="https://www.aljazeera.com/news/2022/2/25/what-is-swift-could-be-used-punish-putin">system for transfers</a>, kind of like a secure Twitter and your online bank combined.Cutting Russia off from the SWIFT network is said to be the nuclear option in the financial world. It isolates them from the global economic system.It was a difficult decision for some western leaders to make.<h2 id="b0a8">They didn’t agree at first</h2>Those that were in favor of the move said banning Russia from the SWIFT network would quickly affect their ability to do business in international markets. It would impair their ability to finance the invasion.Opponents argued that kicking Russia out would put markets into a deeper economic crisis. They were concerned that the move could damage other countries as well.Even Russia doubted the move would come to pass. Nikolay Zhuravlev, vice-speaker of the Russian Federation Council thought a ban was unlikely. He felt that it would be difficult to get the consent required from the members.<h2 id="a77f">Most countries have agreed to take this major

Options

step</h2>They’ve cut off some Russian banks, not all of them. It’s a key way the banks communicate with each other. Not being able to use SWIFT puts Russia back into the Dark Ages economically.“Alicia García Herrero, the chief economist for the Asia Pacific at Natixis in Hong Kong, said <a href="https://www.aljazeera.com/news/2022/2/25/what-is-swift-could-be-used-punish-putin">banning Russia from SWIFT</a> would be a serious blow to the country.”In addition, they’ve targeted the Russian central bank. It’s being frozen around the world and that is another significant step to block access to funds.Cutting off access to Russia’s 630 billion international dollar reserves could collapse the rouble which has serious consequences for their economy.It’s hoped that this SWIFT move and freezing the central bank will be the key that unlocks the door to peace for Ukraine.And we can get back to working together on the many other global challenges facing us.My newsletter is free for anyone. I send it weekly, most of the time. If you also want to receive it, <a href="https://wordsinmotion.substack.com/embed">join the thousands of happy people</a> who enjoy it today.</article></body>

Putin Gets SWIFT Justice

Allies stand together

It’s hard to know what kinds of sanctions are going to motivate Putin to leave Ukraine alone. Allied nations around the globe are working together to find the sanctions that will have the maximum effect.

Imposing sanctions won’t work if the sanctioned country or person can pivot and get what they need from another country.

That’s why NATO members and other countries are rolling them out at the same time. When one country does it alone, it’s not as effective. When everyone works together, it’s like shutting all the doors at once.

What is SWIFT?

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. It’s a network that banks use to send secure messages about money transfers and other transactions.

It’s said to be the backbone of the international financial system for transfers, kind of like a secure Twitter and your online bank combined.

Cutting Russia off from the SWIFT network is said to be the nuclear option in the financial world. It isolates them from the global economic system.

It was a difficult decision for some western leaders to make.

They didn’t agree at first

Those that were in favor of the move said banning Russia from the SWIFT network would quickly affect their ability to do business in international markets. It would impair their ability to finance the invasion.

Opponents argued that kicking Russia out would put markets into a deeper economic crisis. They were concerned that the move could damage other countries as well.

Even Russia doubted the move would come to pass. Nikolay Zhuravlev, vice-speaker of the Russian Federation Council thought a ban was unlikely. He felt that it would be difficult to get the consent required from the members.

Most countries have agreed to take this major step

They’ve cut off some Russian banks, not all of them. It’s a key way the banks communicate with each other. Not being able to use SWIFT puts Russia back into the Dark Ages economically.

“Alicia García Herrero, the chief economist for the Asia Pacific at Natixis in Hong Kong, said banning Russia from SWIFT would be a serious blow to the country.”

In addition, they’ve targeted the Russian central bank. It’s being frozen around the world and that is another significant step to block access to funds.

Cutting off access to Russia’s 630 billion international dollar reserves could collapse the rouble which has serious consequences for their economy.

It’s hoped that this SWIFT move and freezing the central bank will be the key that unlocks the door to peace for Ukraine.

And we can get back to working together on the many other global challenges facing us.

My newsletter is free for anyone. I send it weekly, most of the time. If you also want to receive it, join the thousands of happy people who enjoy it today.