Impact of SWIFT Sanction on Global Economy

Abstract

The ongoing Russia-Ukraine war has brought the SWIFT payment system into the spotlight, with the US and European countries having taken steps to remove Russia from the financial system. This could end up being a lethal catastrophe for Russian banks, particularly the smaller ones. International money transfer using SWIFT banking system was established many years ago. SWIFT has developed to play a critical part in the progression of global business since its beginning in 1973. It facilitates the exchange of funds between monetary institutions that are members of SWIFT. Streamlining and accelerating bank correspondence is at the core of SWIFT's underlying plan objective. Transferring money across borders specifically. This system was evolved over the years and maintained its reputation. Almost all international transactions became reliable on SWIFT systems. Due to the Russian ban on SWIFT system, it can be disruptive on global economy. This study aims to determine the impact of the sanction of SWIFT system that has caused in the supply chain and provides a better insight about the current situations and its impact in the global economy as well as Russian economy .