The Asian Clearing Union (ACU) has announced that it will replace SWIFT, a dollar-based international system, with Iran’s financial messaging system, SEPAM, as an alternative in trade exchanges between ACU members starting next month.
The move is part of a broader de-dollarization trend that is being driven by growing rebellion against US dollar dominance and the US government’s use of economic warfare to punish countries that resist its agenda.
The adoption of Iran’s SEPAM by the ACU will be an interim measure as the ACU plans to develop its own messaging system over the next few months. The ACU comprises the central banks of India, Pakistan, Iran, Bangladesh, Myanmar, Maldives, Nepal, Sri Lanka, and Bhutan. Belarus and Mauritius applied for ACU membership at the May summit meeting.
Russia and Belarus have been excluded from SWIFT, and they have established their own alternative connection by linking Iran’s SEPAM with the Financial Messaging System of the Bank Of Russia. Russian Deputy Prime Minister Alexander Novak has said that approximately 80% of their mutual settlements are in national currencies: rials and rubles.
The trend of de-dollarization is the inevitable outcome of the US government’s use of economic warfare to punish countries that resist its agenda. The quantity of US sanctions has increased by 933% between 2000 and 2021. Countries are compelled to look for non-dollar trade alternatives to avoid being targeted over some future controversy with Washington.
ACU’s move follows a growing assortment of other de-dollarization initiatives around the world. China and France’s Total trade liquid national gas in yuan, Russia and China use the ruble or yuan for more than 70% of their trade, India and Russia trade oil in rupees, Banco BBM from Brazil has joined China’s SWIFT alternative, and 19 countries are applying to join BRICS.
As the world-changing transition towards de-dollarization continues, the global western financial system hegemony is bleeding from within. In this environment, it is no wonder that the Russia-China strategic partnership exhibits no intention of interrupting the “enemy” when he is so busy defeating themselves.
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