De-Dollarization Accelerates: Russia Launches SWIFT-Alternative Linking 91 Entities
by Phil T Looker
Among the information revealed in The Great Leaks of 2013 were the documents that first exposed the extent to which the USA's National Security Agency (NSA) and UK's surveillance operation GCHQ had been secretly 'monitoring' the SWIFT payments system and recording details of cash flowing between nations and organisations. It appears the revelation was the last straws for Russia, China, and other sovereign nations, spying had gone beyond what could be tolerated spying rigging of markets to maintain and dollar domination began to be seen as a series of hostile acts.
Last year (2014), following threats to remove Russia from SWIFT by the UK government, (which SWIFT rapidly distanced its 'independent-self' from), Russia (and China) announced plans to create its own de-dollarized version. In November, Russia detailed the SWIFT-alternative's launch date around May 2015, and just last month, Medvedev warned of "unlimited reaction" if Russia was cut off from the SWIFT payments system.
So the news that Russia has now launched its own 'SWIFT'-alternative, initially linking 91 credit institutions, suggests de-dollarization is considerably further along than was suspected even those of us determined to put into the public domain a degree truth of what is happening expected (especially as Russia dumps US Treasuries at a record pace). I say a degree of truth because independent bloggers and small groups of contrarians cannot hope to gather and publish news on the same scale as traditional broadcasters and publisher. That you will learn nothing of this story and many like it in mainstream media is the perfect illustration of why senior journalist Peter Oborne resigned from The Daily Telegraph recently.
We have covered de - dolarization, the move led by Russia, China and Iran to dump the US Dollar (Petrodollar) as the global reserve currency throughout this omnibus page, and the growing pushback against US economic bullying from smaller nations of the recently formed G77 group, but even out determined efforts have until now not managed to find how rapidly the world is turning away from US domination. Sputnik News reports:
Almost 91 domestic credit institutions have been incorporated into the new Russian financial system, the analogous of SWIFT, an international banking network.
The new service, will allow Russian banks to communicate seamlessly through the Central Bank of Russia.
It should be noted that Russia's Central Bank initiated the development of the country's own messaging system in response to repeated threats voiced by Moscow's Western partners to disconnect Russia from SWIFT.
Joining the global interbank system in 1989, Russia has become one of the most active users of SWIFT globally, sending hundreds of thousands of messages per day. In general, SWIFT provides a secure communication network for more than ten thousands of financial institutions around the world, approving transactions of trillions of US dollars.
Earlier this month Russian Deputy Prime Minister Igor Shuvalov expressed confidence that Russia would not be disconnected from SWIFT. In her turn, Russian Central Bank First Deputy Chair Ksenia Yudaeva called upon Russian civilians and financial institutions not to dramatize the current situation.
Russian experts point to the fact that Western businesses would face severe losses if they expelled Russia from the international SWIFT system. On the other hand, the alternative system launched by Russia might reduce the negative impacts caused by measures imposed by the West, including possible disconnection from SWIFT, and diminish Western financial dominance over Russia.
SWIFT (The Society for Worldwide Interbank Financial Telecommunication) is a Belgium-based international organization that provides services and a standardized environment for global banking communicating that allows financial institutions to send and receive messages about their transactions.Obviously any such system must be able to guarantee the absolute privacy of data, no organisation can tolerate a situation in which its rivals may be able to obtain details of transactions and other trade secrets. The USA faces crises on several fronts, most of these are of its own making and its foreign affairs difficulties are a direct result of Washington's contempt for international law and the sovereignty of other nations.
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Back to Contents table
The world is dumping the American dollar
Failure of American leadership responsible for dollar decline
Fears for the future of the US dollar
Does It matter If The Dollar Is Replaced?
Iran, oil and the US dollar
Obama and Kerry warmongering is about saving the dollar
Collapse of the petrodollar imminent
Obama goes head to head with Russia over the Petrodollar
India and Turkey latest sign - ups to dump the dollar club
Russia, Ukraine and the Petrodollar
Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
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