Iran's banks to be blocked from global banking system

[Nothing]

BBC News - Iran's banks to be blocked from global banking system

Swift, the body that handles global banking transactions, says it will cut Iran's banks out of the system on Saturday to enforce sanctions.

The move will isolate Iran financially by making it almost impossible for money to flow in and out of the country via official banking channels.

It will hit its oil industry, but may also have a heavy impact on Iranians who live abroad and send money home.

The move follows EU sanctions against Iran over its nuclear programme.

The US and its allies accuse Iran of trying to develop nuclear weapons - a charge it denies.

Iran last week agreed to hold talks with six major world powers over its nuclear programme, although no date or venue has been set.

Almost all banking transactions pass through Belgium-based Swift, the Society for Worldwide Interbank Financial Telecommunication, which is sometimes called the "glue" that holds the financial system together.

Swift will pull the plug at 1600 GMT on Saturday, in what is all but the final blow to Iranian business dealings.

Oil
Its announcement coincides with news that major money exchange houses in the nearby United Arab Emirates have stopped handling Iranian rials over the last few weeks, something that has further reduced Iran's ability to trade and acquire hard currency.

Iran's business activities had already been restricted by US anti-money laundering legislation which made it risky for banks around the world to do business with Iran, including trade financing.

It is heavily reliant on its oil industry.

China and India have said they will still take Iranian oil, but the only obvious way for Iran to be paid for it is now in gold.

One Iranian businessman said Swift's move would make it now impossible to conduct business with Iran.

Morteza Masoumzadeh, a member of the executive committee of the Iranian Business Council in Dubai and managing director of the Jumbo Line Shipping Agency, told the Reuters news agency: "If Iranian banks cannot exchange payments with banks around the world then this will cause the collapse of many banking relations and many businesses."

Lazaro Campos, chief executive of Swift, said: "Disconnecting banks is an extraordinary and unprecedented step for Swift. It is a direct result of international and multilateral action to intensify financial sanctions against Iran."

 

[Bhairava]

This is bad considering many Iranian families in Iran may be completely dependent on remittances from family members abroad.

 

[sachin@india]

Inflation gonna touch sky high...

 

[Nothing]

This is bad considering many Iranian families in Iran may be completely dependent on remittances from family members abroad.

That will be nightmare as well as Iranian who is living out side country and depends on money from Iran like students and travelers will be in big trouble..
AS well as for India doing payment via third nation banks will be impossible. This is like putting country in financial blackout ...

Inflation gonna touch sky high...

It is already as well as unemployment

 

[Bhairava]

Idiots are only further hardening Iran's stand and strengthening the Islamist cause.

If only they had half an ounce of common sense they would engage Iran diplomatically and sort out the issue.

 

[TruthSeeker]

It is very, very simple for Iran to avoid all of this. All they have to do is be FULLY co-operative with the IAEA. Let the IAEA visit wherever they want to visit, let them interview whoever they want, etc. If the IAEA is convinced that the Iranian nuclear activities are not at all weapons related, then these sanctions will not be sustainable, no matter what the US CIA or Israeli Mossad thinks is going on in Iran. It is incomprehensible that Iran will not co-operate with the IAEA, UNLESS they really are working on nuclear weapons and are afraid that they cannot hide this fact from an IAEA that has free reign to investigate.

 

[Bhairava]

It is very, very simple for Iran to avoid all of this. All they have to do is be FULLY co-operative with the IAEA. Let the IAEA visit wherever they want to visit, let them interview whoever they want, etc. If the IAEA is convinced that the Iranian nuclear activities are not at all weapons related, then these sanctions will not be sustainable, no matter what the US CIA or Israeli Mossad thinks is going on in Iran. It is incomprehensible that Iran will not co-operate with the IAEA, UNLESS they really are working on nuclear weapons and are afraid that they cannot hide this fact from an IAEA that has free reign to investigate.

You just cant expect a sovereign country to spread their legs as per the wishes of others. No sensible country with an ounce of self respect will agree to that.

And whatever be the motive, making millions of Iranian civilians - families,students as a collateral damage in this venture is highly condemnable.

 

[kollang]

there is no power but with GOD

 

[sachin@india]

they similarly strangle the Iraq and after that millions of Iraqis children got died because of absence of life saving drugs.

 

[Nothing]

It is very, very simple for Iran to avoid all of this. All they have to do is be FULLY co-operative with the IAEA. Let the IAEA visit wherever they want to visit, let them interview whoever they want, etc. If the IAEA is convinced that the Iranian nuclear activities are not at all weapons related, then these sanctions will not be sustainable, no matter what the US CIA or Israeli Mossad thinks is going on in Iran. It is incomprehensible that Iran will not co-operate with the IAEA, UNLESS they really are working on nuclear weapons and are afraid that they cannot hide this fact from an IAEA that has free reign to investigate.

Friend it is not that simple now.. even if Iran is not doing any thing related to N-bomb , but giving IAEA free hands to inspect and interview anyone is not fitting well with Iranian nationalistic mind set. Again more you will push harder with sanctions, life of common men will suffer in Iran not the elite/politicians. Long term solution is to resolve main issue of ME by resolving Israel/Palestine issue. It will take but it will bring long term peace in region. After that force Iranians to accept Israel as country and reduce the tension. This will stop 70% of arm race in region. Again there are GCC countries which see Iran as treat, for this even Iran needs to take steps in positive direction and stop propaganda and senseless political statements for local consumption.
But I doubt anything will happen as there are elections in Iran and USA, ME is seeing its first revolution by ppl in century and only one way to disengage commoners from local issue is WAR. Most of the countries are looking for it including Iran as even they have tension and un-satisfactions among ppl.

there is no power but with GOD

do you have any thing to contribute in this tread ?
For materialistic world power is money.. and there are ways to earn it .. none of them involve GOD .. (no dis-respect for GOD )

 

[TruthSeeker]

You just cant expect a sovereign country to spread their legs as per the wishes of others. No sensible country with an ounce of self respect will agree to that.

It isn't just "per the wishes of others". Iran is a signatory of the UN Nuclear Non-Proliferation Treaty. They are legally bound to co-operate fully with the IAEA, the administrators of this treaty. Iran is violating their UN treaty obligations by not co-operating. Of course, Iran could abrogate the NNP Treaty, but they have not, claiming that they are not violating the Treaty. Israel has not signed this Treaty so Israel has no obligation to allow IAEA inspections, whatsoever.

 

[canadian icehole]

It isn't just "per the wishes of others". Iran is a signatory of the UN Nuclear Non-Proliferation Treaty. They are legally bound to co-operate fully with the IAEA, the administrators of this treaty. Iran is violating their UN treaty obligations by not co-operating. Of course, Iran could abrogate the NNP Treaty, but they have not, claiming that they are not violating the Treaty. Israel has not signed this Treaty so Israel has no obligation to allow IAEA inspections, whatsoever.

Withdrawing from the NPT will not change anything for Iran. Just look at North Korea.

 

[TruthSeeker]

Friend it is not that simple now.. Long term solution is to resolve main issue of ME by resolving Israel/Palestine issue. It will take but it will bring long term peace in region. After that force Iranians to accept Israel as country and reduce the tension.

Friend it is not that simple ... How would you force the Iranians to do that when they believe that Israel must be defeated in the Armageddon to relinquish Jerusalem, thereby opening the door for the return of the Mahdi???? Probably you would try financial sanctions to "force" the Iranians to go against their cherished Shiite beliefs, right?

 

[Nothing]

Friend it is not that simple ... How would you force the Iranians to do that when they believe that Israel must be defeated in the Armageddon to relinquish Jerusalem, thereby opening the door for the return of the Mahdi???? Probably you would try financial sanctions to "force" the Iranians to go against their cherished Shiite beliefs, right?

Really is this what they are thinking or they have issue with Israel's occupation of Palestine's land ?

 

[TruthSeeker]

Withdrawing from the NPT will not change anything for Iran. Just look at North Korea.

True. It would bring clarity to the Iranian position, however. If they withdraw from the NPT is will be unmistakable to all that they intend to develop a nuclear weapon. Probably a number of other Gulf nations would withdraw from the NPT in response. That doesn't change my point that the Iranians could defuse the entire situation by fully co-operating with the IAEA. Given the very high price they are paying, it isn't rational to me that they aren't doing this. UNLESS they want nuclear weapons above all else, and they do not believe they can deceive the IAEA if they fully co-operate. What other rational explanation is there for Iranian behavior?