What is the MIR System and Why will Iran and Russia trade in the 'MIR' system, avoiding the Swift system?

What is the MIR System and Why will Iran and Russia trade in the ‘MIR’ system, avoiding the Swift system?

What is the MIR System?

MIR is a Russian payment system for electronic fund transfers established by the Central Bank of Russia under a law adopted on 1 May 2017. In Russian, it is ‘Мир’. The MIR processes money transactions like the Swift system. The MIR system is owned entirely by the Central Bank of Russia and operated by the Russian National Card Payment System. MIR and SPFS are the alternatives to Swift.

The National Payment Card System (NPCS), the operator of ‘MIR’ cards, was established in 2014 after Crimea voted in a referendum to join Russia. In English, “mir” means “world” or “peace.” It was made in the event that cards were disconnected from international payment systems. Even back then, budgeting groups began to phase out Visa and Mastercard card payments. Employees of budgetary organizations have begun to have their pensions, social benefits, and salaries transferred to the ‘MIR’ payment system.

MIR HEADQUARTERS

Why will Iran and Russia trade in the ‘MIR’ system, avoiding the Swift system?

The Islamic Republic of Iran and Russia plan to use the Russian system ‘MIR’, excluding the US-controlled economy Swift. The two countries have already started discussions on the issue. Iran’s ambassador to Russia Kazem Jalali made the

More than half of Russian citizens use the MIR Bank card, and more than 25 percent of Russia’s economic transactions are handled under the MIR system.

At a news conference on May 24, 2022, Iran’s ambassador to Russia Jalali said that Russia and Iran were considering launching a separate financial messaging system, excluding the Swift system.

We know that The United States and its Western allies have repeatedly imposed thousands of sanctions on Moscow since Russia launched a military operation in Ukraine on February 24. As part of this, they excluded Russia from the Swift system. Both Iran and Russia are under US sanctions, and they are considering a separate economic system, avoiding the United States and the West.

I think it is a good move for Russia and Iran. Thousands of sanctions to the countries will help the countries to become self-sufficient.