NEW DELHI: Among the range of not so high profile financial instruments that the world can bring to bear on Russia for invading Ukraine, is the humble SWIFT code. It stands for Society for Worldwide Interbank Financial Telecommunication. Basically it is a messaging network that banks use to verify other banks before a transaction takes place. Now Russia is being removed from that network.
Speaking to StratNewsGlobal, Dr. Suranjali Tandon, Asst. Prof. National Institute of Public Finance & Policy, said Russian banks can no longer avail of that network. This hits domestic and international financial transactions, thereby causing Russia losses.
Of course Russia has over the last few years built up a parallel messaging network for its banking sector, but how well developed it is and how widespread it is, is not known. So one can presume Russia will be financially inconvenienced.
Tune in for more in this conversation with Dr Suranjali Tandon of the National Institute of Public Finance & Policy.