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Europe's Alternative To Swift Another Nail In The Dollar's Coffin

Sep. 27, 2018 4:48 PM ETUUP, UDN, USDU5 Comments
Robert Kientz profile picture
Robert Kientz


  • Europe's alternative to SWIFT will allow them to get around trade sanctions the US has put on Iran.
  • Russia, China, and European leaders have all expressed the desire to move past the dollar system for international trade.
  • The Dollar's reserve currency status is under serious threat considering trade deals being negotiated in other currencies and gold.

The Wall Street Journal reports that Europe has agreed to develop an alternative to the SWIFT payments system to facilitate trade with Iran.

The European Union’s announcement that it would establish a special payments channel to maintain economic ties with Iran sent a clear message to Tehran and Washington: Europe is intent on trying to save the 2015 nuclear deal.

Europe Weakens US DollarPhoto Credit

Channel NewsAsia reports that the system is being put into place to protect the freedom of trade.

Iran and the European Union announced their defiance towards US President Donald Trump's administration after high-level talks at the United Nations among the remaining members of the accord.

The countries said in a statement that they were determined "to protect the freedom of their economic operators to pursue legitimate business with Iran".

The system would facilitate payments related to Iran's exports, including oil. Iran is in the top 5 globally in proven oil reserves, which means the deal is extremely important to the future US dominance in global oil trade through petrodollar agreements.

Image Source

Further, NewsAsia reports that Iranian foreign minister Mohammad Javad Zarif intimated that Iran would also be open to using the system to fund deals with other trade partners.

"In practical terms, this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world," she told reporters.

Will the end of the petrodollar dominance signal the end of the US dollar as the world reserve currency for trade? This is quite possible one of the big nails in the coffin for the Dollar.

Leonid Bershidsky, via Bloomberg, notes that "creating "a defensible

This article was written by

Robert Kientz profile picture
Author of DropShadow and founder of Gold Silver Pros @ goldsilverpros.com.I have been analyzing the precious metals markets for over 10 years, and have built relationships with many experts in the field which include miners, geologists, and analysts. My site is dedicated to providing you professional research on the precious metals market.I have spent over 20 years working in the technology sector as both an IT and information security professional. I have a Masters degree in Information Assurance & Security, a Bachelors in Business with an MIS concentration, and an Associates in Applied Sciences in Unix Administration and Cisco Networking. I began my investing career over 16 years ago while completing several investment advisory exams - Series 3, 6, 63, and 7 covering the commodities, insurance, and stock markets. After watching the 2008 recession calamity, I began deep research into the economy and markets where I found solace in the writings of Austrian economists whose theories accurately predict and analyze the issues surrounding currencies and financial crises. I then wrote a book, based upon my own extensive research, entitled Dropshadow: The Truth About the Economy, which is available on Amazon.Shortly after writing the book, I began writing for Seeking Alpha and other online outlets on economic and financial topics and issues. I have focused my market research writings on Seeking Alpha since 2018.In 2018, based upon my deep research into the precious metals, I launched my personal newsletter service for investors @ www.goldsilverpros.com where I provide precious metals investors with research updates and insider intelligence in order to help them better invest in those markets.

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