{UAH} COULD EU COMMUNISM CHALLENGE US DOMINATION?

Europes new INSTEX international payments system is a special purpose barter trade system which enables trade without contravening US sanctions and ensures no cross-border payments using the US-dominated SWIFT international financial payments system.

How exactly does INSTEX work?

According to Forbes magazine, "INSTEX matches the Euro payments of EU companies buying goods from a sanctioned country, with the Euro receipts of EU companies selling goods to that country. For example if a company based in France wants to sell transport equipment to a buyer in sanctioned Iran, receiving Euro payments directly from the Iran buyer would break U.S. sanctions. So instead, the French company would register the sale documentation with INSTEX, which would then look on its own books for any EU company buying foodstuffs from Iran. It would match the two cash flows so that in effect the two European companies pay each other. The goods would still travel to and from Iran, but the money would stay entirely within the EU.

On the Iranian side, INSTEX is mirrored by a similar system (known as STFI) which would likewise match incoming and outgoing transactions. So the two Iranian entities would also effectively pay each other, and Iranian money would also stay in Iran. Thus, everyone would receive their goods and payments, but no money would cross the border.

Forbes adds that "more EU Member States are in the process of joining INSTEX as shareholders, and the EU is also working to open INSTEX to economic operators from third countries."

Essentially meaning that any country that doesn't want to have to deal with the inconveniences posed by US sanctions dictatorship, could find the INSTEX system to be the easy remedy. Thereby increasing the chances that with a few adjustments for ease of business, increased clarity in economic benefits of such a system, and more international participants on board, INSTEX might one day become the capitalist communism alternative of the global financial system.

Read details on EU's INSTEX here: forbes.com/sites/francescoppola/2019/06/30/europe-circumvents-u-s-sanctions-on-iran/

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