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Swift Not a ‘Nuclear Option’ for Russia, the World Is Eurodollar Not Dollar
- Nevermark 5y agoI am not an expert at all on these kinds of things. But my expectation is that when banks drop Russian counterparts on the SWIFT system, or other standard systems, there is a wide halo of non-cooperation with Russia that goes along with that. Banks who have cut off Russia are expected not to use other channels and intermediaries (friendly to Russia) to continue transacting with Russia. Getting knocked off a system is as much a signal that the US and Europe are serious about cutting ties with Russia, as it is a practical step. The US or Europe are not going to treat any entity kindly that drops Russia from SWIFT just to move on to another system. Even if someone thinks there is some obvious legal or technical work loop hole. That isn't how power works. Most effects of power never need to be codified. The repercussions of angering a huge power are too obvious once the power has clearly signaled their resolve.