Economy, Domestic Economy

Iran to Join Postal SWIFT in December

Iran to Join Postal SWIFT in DecemberIran to Join Postal SWIFT in December

Iran will be connected to the financial services system of the Universal Postal Union, which is similar to global transaction network SWIFT, the chief executive of Iran Post Company said.

“The UPU’s International Financial Services, an electronic network for money transfers plus applications to access it, will be officially launched in Iran by December 21,” Hossein Mehri was also quoted as saying by Fars News Agency.

Mehri reiterated that IFS is active in 170 countries and its launch will ease global financial transactions, including electronic payments, for Iranians.

“Iran has paid $30,000 in network royalties and coordinated network tests with four countries, while agreements with five other countries will be reached soon,” he said.

UPU is the primary international forum for cooperation and rule-setting between postal departments around the globe where some 1.5 billion people enjoy access to basic financial services such as payments, money transfers and savings.

Cross-border transactions are still a major problem for Iranians despite the lifting of sanctions in January 2016. The country was cut off from the global transaction network, including SWIFT, for four years over its nuclear program.

The Belgium-based Society for Worldwide Interbank Financial Telecommunications, or simply SWIFT, reconnected Iranian banks to its system in early 2016 but many international banks avoid transactions related to Iran over fears of US punitive action.

Add new comment

Read our comment policy before posting your viewpoints