Iran to use Russian, Chinese banks for indirect money transactions, bypassing SWIFT ban - expert
Azerbaijan, Baku, Feb. 19 /Trend S.Isayev/
The Iranian banks will probably try to use Russian and Chinese banks to do their transactions indirectly, instead of using SWIFT, Professor of chemical engineering in Southern California University, Muhammad Sahimi told Trend.
"This will of course cost them, but they have no alternatives," Sahimi added.
The expert was commenting on recent news about Society for Worldwide Interbank Financial Telecommunication (SWIFT) discontinuing services to the Iranian banks, going along with the recent European Union sanctions on the Islamic Republic.
SWIFT is a secure private network used by nearly every bank around the world to send payment messages that lead to the transfer of money across international borders.
The move by the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is part of a broader effort by Western nations to isolate Iran financially and force it to demonstrate that it is not trying to develop nuclear weapons.
Iran says that its nuclear program is for peaceful purposes only, but officials in many other countries believe otherwise.
Sahimi also believes the new sanctions on Iran will further worsen Iran's economy.
"Cost of doing business with the outside world has increased and will continue to increase, the price of almost everything will also increase in Iran," Sahimi noted. "That will make the rate of inflation, already hovering around 25-30 percent, even higher".
Industrial production is to be affected as well, according to Sahimi, as Iran needs to impost certain raw materials as well as industrial components, which in turn will affect the employment worse.