In Major Threat To Dollar’s Reserve Status, Russia Offers To Join European SWIFT-Bypass

Almost all international financial transactions of any consequence happen through the SWIFT system. The two main nodes are in the USA and in Belgium.

(From Zerohedge)

…the idea behind Instex (the SWIFT alternative) was to set up a mirror image transaction system that replaces potentially sanctionable international payments between Europe and Iran with payments that do not cross Iran’s borders, nor are they denominated in dollars to avoid giving the US veto rights.

As a final point, the FT quotes analyst who said that China, which has repeatedly defied US sanctions on Iran, has greater potential to hand Tehran an economic lifeline by continuing to purchase Iranian crude exports; it has yet to be seen if China will also join Instex.


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