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Iran economy suffers a blow after being blocked out from the financial messaging system SWIFT

Saturday, came in a shock for Iran when the financial messaging system SWIFT which links more than 9700 banking organizations, securities institutions, and corporate customers around 209 countries which involves 19 banks and 25 financial institutions of Iran itself had been blocked for the country, as according to United States it is the major source that is responsible for funding the nuclear operations which is an act of terrorism in Iran.

According to the economists the SWIFT move will not only strangle overseas Iranian businesses but will also make the lives of the Iranians more difficult as not only remittances from other countries will be halted, even the Iranians would not be able to conduct their personal transactions. The most to suffer from this ban would be the traders as almost 8000 companies owned by the Iranians operate in the UAE that deals mainly with food, tyres, electronics, raw materials, steel and iron industries. And now without the banks the traders are under the threat that either their business might suffer a severe decline or worst might even be destroyed completely.

Although it might be a black period for the Iran’s economy and the traders but according to some economists they think that Iran will definitely find a turn around in this matter as it had proved itself in difficult situations earlier also and it still has economic partners that are willing to work along Iran which includes India, China, Malaysia, Turkey which haven’t shown any signs of joining the West sanctions, at least not till now. They also added that even though Iran might find a way out, still it might prove to be a more costly, unsecured and a very complicated way. Kiran Kidwai – International Desk, NMTV

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