Finance and Credit
 

Economic consequences of disconnecting the Islamic Republic of Iran from the SWIFT international payment system

Vol. 24, Iss. 3, MARCH 2018

Received: 23 January 2018

Received in revised form: 7 February 2018

Accepted: 22 February 2018

Available online: 29 March 2018

Subject Heading: INTERNATIONAL PAYMENT MECHANISMS

JEL Classification: F40, F51, G21, P45

Pages: 722—736

https://doi.org/10.24891/fc.24.3.722

Omarov K.A. Diplomatic Academy of Ministry of Foreign Affairs of Russian Federation, Moscow, Russian Federation
omarov.k.a@yandex.ru

ORCID id: not available

Subject The article examines the economic consequences of disconnecting the Islamic Republic of Iran from the SWIFT international payment system.
Objectives The study aims to propose an alternative method of interbank settlements capable to eliminate the dependence of the Islamic Republic of Iran on the SWIFT payment system.
Methods For the study, I employ statistical, comparative and logical methods.
Results The sanctions imposed in 2012 against the Islamic Republic of Iran caused a reduction in Gross Domestic Product and export of goods, a high rate of inflation in the country and its currency devaluation. More than a half of Iranian manufacturing enterprises found themselves in a critical state.
Conclusions and Relevance Modernization and promotion of the financial messaging system of the Bank of Russia may prove to be quite competitive in the international payment systems market. The symbiosis of the blockchain technology with Russian developments in this area may provoke interest of foreign financial institutions in cooperation in the banking sector and attract new participants worldwide, in particular, where there is a risk of disconnection from the widespread monopolistic payment system of Belgian origin.

Keywords: sanctions, banking system, payment system, blockchain

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