SWIFT (The Society for Worldwide Interbank Financial Telecommunications) IMPOSSIBLE FOR GLOBALIZATION ABSENT ACRONYM SWIFT



Globalization would be impossible without SWIFT

The society was founded in 1973. By that time the post-war monetary system established in 1944 in Bretton Woods had virtually collapsed. The dollar as well as other currencies had been divorced from gold, and the printing presses at the US Federal Reserve and other Western central banks were furiously at work. The volume of international payments had increased sharply. The traditional systems for sharing data about payment transactions (the teletype, telegraph, and telephone) could not cope with the increased traffic.

It was necessary to draw upon the latest technology in order to centralize the isolated channels used to exchange information. Two hundred thirty-nine banks from 15 countries worked together to set up an organization devoted to solving this problem. SWIFT is a cooperative society, established under European law, with a head office in Brussels. Currently almost 11,000 institutions from over 200 countries, including 9,600 banks, are members of SWIFT. Every year 2.5 billion payment orders are transmitted through the SWIFT network, which processes billions of dollars each day.

SWIFT’s advantages are its speed, low cost, and reliable data protection. As a result, the majority of the world’s international settlements and payments now go through the SWIFT system. Payments are also cleared through this network even when each of the parties is under the same jurisdiction. This includes dollar and euro payments that must be handled by the banking systems of the US and European Union. During the 21st century the SWIFT system began helping money circulate throughout the entire global economy. The economic and financial globalization that began in the 1970s would have been impossible without SWIFT.   http://www.voltairenet.org/article191715.html


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