Relations between Iran and the United States have been strained, and the United States has imposed several economic sanctions on Iran. One of the key sanctions was the kicking of Iran out of the SWIFT system, an international money communications system managed by the Society for Worldwide Interbank Financial Telecommunication. The role of the SWIFT system is to be used for the transmission of information on cross-border transactions, without involving the settlement of funds. Although Iran was kicked out of the SWIFT system, they can still transmit cross-border transaction information through other payment systems, and finally realize the settlement of foreign ** funds.
Just like when we use RMB for international payment in China, it is ultimately bookkeeping and clearing in the account system of the Central Bank of China through large-value payment and small-value payment system. And the liquidation of the dollar is carried out through the clearing system chips in the United States. Each currency has its own final clearing system, and these systems are in the hands of the issuer of each currency, for example, the final clearing system for the RMB is controlled by the People's Bank of China, and the final clearing system for the US dollar is controlled by the Federal Reserve. Banks in Iran do not have the right to issue US dollars, but only record the inflow and outflow of US dollars, and cannot add additional dollars to an account out of thin air.
Of course, if the United States closes the channels of capital circulation, the number of dollars on the international market will remain constant. Although the U.S. dollar can be internally circulated in the accounts of major banks and enterprises around the world, the decrease in the amount of U.S. dollars in account A must be the increase in the U.S. dollars in account B. Banks in other countries cannot replace the Fed to issue dollars and allocate funds to their own corporate accounts. Otherwise, it will lead to chaos in the world's financial system. Thus, by controlling the clearing system, the United States can freeze Iranian assets so that they cannot complete payments, transactions, and liquidations, making funds imliquid and unusable, which is why the United States is still able to freeze Iranian assets.
However, due to the threat of frozen funds in the United States, countries have an increasing demand for local currency settlements. The advantage of local currency settlement is that it can avoid the dilemma that the foreign currency held in the hand cannot be used in the international market when it is sanctioned by other countries. As a result, countries are promoting local currency settlements in the hope of expanding the use of their national currencies around the world. By mastering the final settlement system of the local currency, the country is better able to guarantee its own economic security.
As we all know, the final liquidation system of money is an important tool in the hands of the currency issuing unit. By mastering the final clearing system, currency issuers can better manage and control the flow of funds. The final settlement system of the local currency will determine the scope and influence of the local currency in the international market.
Taking the US dollar as an example, the Federal Reserve, as the issuer of the US dollar, holds the final clearing system chips of the US dollar. By controlling the chips system, the Fed is able to control the flow and use of the dollar, which plays a central role in international transactions and payments. Banks and corporate accounts in other countries have dollars flowing directly or indirectly from the United States, and they cannot create new dollars out of thin air, as the Fed does.
As for Iran, they do not have the right to issue dollars, and can only record information on the inflow and outflow of dollars. This puts them at a disadvantage in the international ** and cannot settle their funds independently. When the United States froze Iran's assets, other countries did not dare to collect them, and they were unable to complete the information transfer of dollar funds between banks. Iran's assets have become unusable and unusable, becoming a symbol of currency like waste paper.
Therefore, mastering the final liquidation system is essential for a country's economic security and development. By promoting local currency settlements, countries hope to reduce their dependence on the US dollar and protect the global position of their national currencies. This is also one of the important measures taken by countries in the economic field to try to get rid of US control and sanctions.
On the one hand, the freezing of Iranian assets reflects the economic power and control of the United States, and on the other hand, it also exposes the imbalances and instability in the global economic landscape. As one of the main hegemons of the global economy, the United States is able to impose sanctions on other countries and freeze funds by mastering the final liquidation system and other means, which exposes the hegemonic position of the United States in the global economy.
However, the freezing of Iranian assets has also caused alarm and reflection in other countries. Countries are paying more and more attention to protecting their own interests and economic security in economic development, and it has become a trend to strengthen local currency settlements to reduce dependence on the US dollar. At the same time, international cooperation has deepened, and countries have begun to actively promote multilateral settlement and financial cooperation to reduce the risk of being sanctioned by a single country.
This trend has had a profound impact on the changing global economic landscape. U.S. economic hegemony has been challenged, and other countries have sought to change the current pattern of single country dominating the global economy. While the process of this change will be relatively long, it is beginning to show signs of becoming more and more evident on a global scale.
To sum up, after Iran was kicked out of the SWIFT system, the United States was still able to freeze Iran's assets because it had mastered the final liquidation system, chips. This allows the U.S. to impose sanctions on other countries by controlling the flow of funds, influencing international** and payments. In order to protect their own economic security, countries have strengthened local currency settlements, reduced dependence on the US dollar, and worked hard to get rid of US control and sanctions, thereby promoting changes in the global economic pattern. It also reminds all countries to strengthen cooperation and stability and jointly safeguard the stability and development of the global economy.