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SWIFT Sanctions on Iran Ripple Business Throughout the World
Business in Iran and those that conduct it are already feeling the SWIFT cutoff imposed by the US sanctions. This one sanction, if allowed to work for some time, could bring Iran down. Not a collapse, but, its citizens could reignite the Green Revolution when goods and medicine become hard to find. Give this a few more months.
SWIFT is simply how the world's banks use wire transfers to move money around accounts across the globe, one company to another. If the banks are cutoff, this simple, instant method to receive and send payment for goods, becomes quite an issue. For instance, an American company that had sold Iran many basic raw materials allowed cannot obtain the $4 million Iranian firms owe it. Major US drug companies like Merck, Pfizer, are in the same boat, the products have already been sent and now Iranian companies have no way to send payments. The US Treasury has blacklisted 23 Iranian banks gradually squeezing Iran's ability to do business with the world. All of Iran's top five banks are cutoff.
How this impacts the average Iranian is that firms stop their shipments of goods and food because getting paid for them is now tedious and time consuming, if at all. In Turkey, garment manufacturers and others have large costly amounts of product being stored because it cannot be shipped to Iran because merchants doubt about payments. Some of these products are Iran specific and selling them elsewhere would be hard. All Turkish banks, but one, have refused to process payments to or from Iran. How is Iran handling this? The old fashioned way, suitcases of cash cross the border into Turkey by land or air. Turkish tourists also love vacationing in Iran but because the transactions must be in US dollars, Iran's tourist industry is down by 80% already.
Iranians are getting pissed at the loss of business and many are blaming it politics. They are frustrated by a lack of products they normally had, by the lack of variety, by growing scarcity of many things, and of not being able to make a decent living. Of course, those companies that normally do business with Iran have stopped because of lack of payments, so they are also losing business income.
All this hardship over Iran's desire to have a weapon that it does not need. Go figure. On a side note, the SWIFT cutoff shows how an entity who has control of SWIFT might control and coerce much of the world to follow their beliefs, for example, the Antichrist.