SWIFT
- February 28, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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SWIFT
TOPIC: Economy
Context- The European Union, US, UK and allies have agreed to exclude a number of Russian banks from Swift, an international payment system used by thousands of financial institutions.
Concept-
What is Swift?
- Swift is the global financial artery that allows the smooth and rapid transfer of money across borders.
- It stands for Society for Worldwide Interbank Financial Telecommunication.
- Created in 1973 and based in Belgium, Swift links 11,000 banks and institutions in more than 200 countries.
- It is a sort of instant messaging system that informs users when payments have been sent and arrived.
Who owns and controls Swift?
- Swift was created by American and European banks.
- The network is now jointly-owned by more than 2,000 banks and financial institutions.
- It is overseen by the National Bank of Belgium, in partnership with major central banks around the world.
- Swift helps make secure international trade possible for its members.