Accelerating De-Dollarization: The Asian Clearing Union Will Launch A New System To Replace Swift This Month

Financial Associated Press, June 2 (Editor Zhao Hao) The latest news shows that the Asian Clearing Union (ACU), which is composed of nine Asian countries, will launch a new cross-border financial settlement system in June this year as a global interbank financial communication system. Alternatives to the association (SWIFT) system.

It is understood that the Asian Clearing Union, established in 1974, is a regional multilateral trade clearing organization, composed of Iran, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka and Myanmar.

 

Last week, member countries held their 51st summit at the headquarters of the Asian Clearing Union, Tehran, the capital of Iran. It was revealed at the time that they were discussing launching a banking information system comparable to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

 

CCTV News recently quoted Karimi, deputy governor of the Central Bank of Iran, as saying that the new settlement system can completely replace the SWIFT system and can promote the global de-dollarization process. Karimi also added that the new system will only be available to members of the Asian Clearing Union, but other countries can apply to join.

 

Previously, the rotating chairman of the ACU also stated that the organization would seek to admit new members and assist these potential new members in their actions to de-dollarize. It is understood that Belarus and Mauritius have already submitted applications to join the organization during the summit, and Russia also sent representatives to attend the summit.

 

Accelerate "de-dollarization"

 

According to media reports, the Asian Clearing Union's plan to launch a SWIFT replacement shows the alliance's strong willingness to reduce the weight of the US dollar in global trade. Five years ago, the United States withdrew from the Iran nuclear agreement and restarted sanctions against Iran, severely restricting Iran's economic and trade development.

 

Especially after the outbreak of the Russia-Ukraine conflict, in order to completely defeat Russia economically, the United States led Western countries to implement unprecedented financial sanctions against Russia. In the end, a large amount of Russia's foreign exchange reserves were frozen and confiscated, and many Russian banks were kicked out of the SWIFT system.

 

Last month, the US think tank "Quincy Institute of Statecraft" published an article stating that the US government's series of sanctions against Russia have disturbed many emerging economies, and the global "de-dollarization" process is accelerating. Many developing countries Looking for an alternative to USD.

 

Jim Rogers, a well-known American investor, also said recently that due to the lack of neutrality in Washington and concerns about the credibility of the United States, the era of the US dollar as the world's major currency is coming to an end.

 

The Financial Associated Press previously mentioned that Russian Deputy Prime Minister Novak told the media that Russia and Iran are discussing the use of other countries' currencies for settlement, "including RMB, which is also one of the directions. The banks of the two countries are working hard in this direction. "