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The Society for Worldwide Interbank Financial Telecommunication, legally S.W.I.F.T. SC, is a Belgian cooperative society providing services related to the execution of financial transactions and payments between banks worldwide. Its principal function is to serve as the main messaging network through which international payments are initiated.

It also sells software and services to financial institutions, mostly for use on its proprietary "SWIFTNet". Its important to understand that money is not moved through the SWIFT system but most importantly is the data attributed to the money that is moved through this medium. In other words, without SWIFT the institutions wouldn’t know who and for what reason is a transaction is being made.

For example; if you are sending money from country to country, SWIFT would inform the recipient bank that is getting the money, to expect a certain sum, from a certain bank. So its an extremely important step that will be taken away from Russia. If you do not have that information flow; you simply cannot do any international transactions.

SWIFT welcomes the public launch of the New Payments Platform (NPP) in Australia, which is set to revolutionise the way payments are made domestically. SWIFT has helped to design, build, test and deliver the NPP and will play a key role in operating the infrastructure for the NPP. The NPP’s paradigm-shifting financial architecture has been designed and constructed to fundamentally improve how consumers, businesses and governments transact with one another.

The key features of the NPP include: 24/7 instant payments and real-time line-by-line settlement via the Reserve Bank of Australia’s Fast Settlement Service PayID, the new and easy way to link a financial account with an easy-to-remember identifier such as a mobile phone number, email address or ABN for businesses Open access platform that truly empowers innovation through competition Overlay services framework that will provide new value services to Australian consumers, businesses and government Russia’s SWIFT Sanction Since the invasion of Russia, many countries have joined forces in order to impose heavy sanctions on Russia. Some of these actions are to limit, deter and coerce Russia or Vladimir Putin into changing his strong stance in the war against Ukraine. These sanctions would be felt throughout all classes of Russia’s community and its corporate arm.

One popular sanction has been to remove Russia from the SWIFT messaging system, with the intention to stop any Russian companies from doing international business, which in turn would hurt Russia’s economy and potentially turn Russian loyalists against Mr. Putin and force him into an unlikely reversal of the war. Although this is somewhat looked upon as a key destabilizing strategy by the West, there are some that feel the move is mostly symbolic.

EU bars 7 Russian banks from SWIFT, but spares those in Energy (Reuters). The European Union said on Wednesday (2 nd march) it was excluding seven Russian banks from the SWIFT messaging system, but stopped short of including those handling energy payments, in the latest sanctions imposed on Russia over its invasion of Ukraine. VTB Bank PJSC and Bank Rossiya are among the banks that face a ban from the messaging system.

The other institutions included on the EU list are Bank Otkritie, Novikombank, Promsvyazbank PJSC, Sovcombank PJSC and VEB.RF, said the officials, who asked not to be identified because the decision was private. European Union ambassadors agreed to spared the nation’s biggest lender Sberbank PJSC and a bank part-owned by Russian gas giant Gazprom PJSC. Would it work: Professor of Financial Economics at the University of Loughborough University, Alistair Milne, explains why he is sceptical of the sanction. “Russia’s exclusion from the international payments messaging system Swift, is presented as a powerful means of undermining its economy.

But for a payment’s expert such as myself, this is something of a myth.” He continues, “The reality, however, is that limiting access to Swift is less practically effective than most media coverage supposes. It is an important symbol of global repudiation of Russia’s exercise of military force, but not much more. It is other measures, such as blocking the central bank of the Russian Federation from transacting internationally, which is undermining confidence in the Rouble.” “There is no fundamental problem with transferring funds using some other secure messaging systems.

Russian banks might, for example, instead arrange payments using the SPFS system, which was established after the 2014 invasion of Crimea by the Russian central bank. This is currently used by a handful of international banks in Germany and Switzerland linked to Russian banks.” “Or they could use the CIPS network, which was created by the People’s Bank of China for the purpose of cross-border payments with indirect participants in many countries. They could even use WhatsApp to instruct the necessary transactions.” Leaving room for negotiation?

The EU has avoided the sanctioning of all Russia banks, specially those that use SWIFT in the energy industry. This might be crucial as they seem to be trying to limit Russia, but at the same time keep the door ajar to be able to negotitate energy deals, which, the West are hugely dependednt on. Another thing to note is payments for Russian energy exports, for example to Gazprom, are even less Swift-dependent.

When operators buy oil or gas from Gazprom, they make payments in either euro or US dollars into bank accounts held by the Russian energy company. So if the intention of sanctions is to block payments for Russian gas, the tool is not Swift; it is sanctions on Gazprom and its banking facilities. Perhaps this could be something that is visited in the future.

The absence of Sberbank PJSC and Gazprombank shows the continuing level of concern over the consequences for Europe from a financial isolation of Russia spilling over into the global economy, especially when it comes to energy supplies. The bloc is also worried Russia could retaliate by cutting deliveries. Sources: Reuters, Wikipedia, Loughborugh University, Bloomberg, swift.com

Last week, Russia took a step that not many people thought it would take – they invaded Ukraine. Even though the tensions have been building in the region since the annexation of Crimea in February 2014, not many people thought Vladimir Putin would take the step to invade a sovereign nation. Five days on from the start of the invasion, we have already seen countries around the world condemn Russia’s actions and announce tough sanctions against the largest country in the world.

None of those have yet made any difference to their actions, as they continue their invasion. However, their actions have already impacted their economy - and it will most likely get worse. Swift action from the West Over the weekend, the United States, European Union, United Kingdom and other countries agreed to remove a number of Russian banks from The Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, an international payment system which is used by financial institutions around the world. "We commit to ensuring that selected Russian banks are removed from the SWIFT messaging system.

This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally," the European Commission said in a statement following the announcement. The latest move will have a drastic impact on the Russian economy, which is the 11 th largest in the world according to the World Bank data. It is worth pointing out that only one other country has ever been cut off from the SWIFT system – Iran.

The move resulted in Iran losing half of its oil export revenues and 30% of foreign trade. The central bank reacts On Monday, the Bank of Russia announced its key interest rate from 9.5% to 20% to protect the Ruble, as the pressure mounts on the Russian economy following the latest round of sanctions. ''External conditions for the Russian economy have drastically changed. The increase of the key rate will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks.

This is needed to support financial and price stability and protect the savings of citizens from depreciation,'' the Central Bank said in a statement on their website. ''Further key rate decisions will be made taking into account risks posed by external and domestic conditions and the reaction of financial markets, as well as actual and expected inflation movements relative to the target and economic developments over forecast period,'' the statement continued. The Central Bank of Russian Federation interest changes since July 2020 Financial markets Last week we saw the Moscow stock exchange, the MOEX index, plummet by 45% - to a new record low. The index recovered some of the losses last Friday when it was up by 20%.

On Monday, it was announced that the exchange will not open and the Russian Central Bank said that the operating hours of the exchange would be announced on 1 March 2022 before 9:00 Moscow time. MOEX Russia Index The Ruble The Russian currency has been in free fall since the conflict began – reaching the lowest level ever against the US Dollar. US Dollar was trading at around 76 level at the beginning of February vs. the Russian Ruble.

USD/RUB was trading 107.7000 level on Monday – up by around 27%. USD/RUB With the conflict showing no signs of getting resolved any time soon, we will most likely see more impact on the Russian and world economy in the coming weeks and months. Sources: The World Bank, TradingView, Global Rates, The Central Bank of Russian Federation

Investors are currently bracing for further volatility in the global markets as Russia’s troops have been deployed into eastern Ukraine. The heightened tensions between Russia and Ukraine reached a tipping point last week when the Kremlin had officially recognised regions in eastern Ukraine held by separatists (supported by Russia). Russia ordered troops to enter Ukraine on a peacekeeping mission.

The western countries have responded promptly, with the UK and US among the first countries to reprimand Russian actions with their first round of restrictive economic sanctions. The US had unveiled various sanctions targeting Russia, this included limits on sovereign debt and Russia’s two biggest banks, Promsvyazbank and VEB, who both support the military. A statement from The White House described these measures as the “first tranche of swift and severe costs on Russia” and said the Treasury would “determine that any institution in the financial services sector of the Russian Federation economy is a target for further sanctions.” Australia also followed the US's lead and applied sanctions on Russia aimed at the country’s elites and commercial sector, including transport, energy companies and banks.

Investors had a major focus on Energy commodities given Russia’s strong supply of gas to Europe, especially at a time of strong demand and constrained output that has plagued the region for much of the past year. Here are some thoughts from Vivek Dhar, analyst covering energy commodities for CBA, and Shane Oliver, chief economist for AMP Capital. Mr.

Dhar describes the initial US sanctions as relatively tame given they target sovereign debt, which is low for the Russian economy. Instead, Germany’s decision to suspend the certification of the Nord Stream 2 pipeline poses a more serious response to the escalating situation, given it would have eased the region’s gas shortages. “The extent of Russia’s incursion will likely see sanctions escalate in turn. A full‑scale invasion of Ukraine certainly opens the door to sanctions on Russia’s oil and gas exports,” he added, which could push the price of oil beyond $US100 per barrel.

Mr. Oliver believes there was a risk Russia could itself cut off supply of gas to Europe, “with a potential flow-on to oil demand at a time when conflict may threaten supply”, adding to anticipated inflation. Investors are worried about a stagflationary shock to Europe and, to a lesser degree, the global economy.

All in all, the crisis between Russia and Ukraine is still ongoing and there will certainly be further actions taken by countries across the world. As investors' uncertainty slowly rises, the global markets will adjust with every major update. Keeping up to date with other countries’ sanctions and reaction to the invasion can be a rewarding task as opportunities can present themselves.

If you have spotted an opportunity to invest in the global markets and don’t already have a trading account, you can register for an account at GO Markets.

For years, gold has been considered a store of value. As a physical commodity, it cannot be printed like money, and its value is not impacted by interest rate decisions made by a government. Because gold has historically maintained its value over time, it serves as a form of insurance against adverse economic events.

When an adverse event occurs that lingers for a while, investors tend to pile their funds into gold, which drives up its price due to increased demand. There have been many instances in our history, where war has ignited investment into gold. One particular moment in the 21 st century which signaled a strong movement into gold as a safe haven was the unfortunate event which occurred on 9/11.

Another was the Global Financial Crisis in 2008. In both instances gold’s price sored and it returned higher profits than any other financial asset. It’s important to understand at this stage, even though gold has these unique characteristics, it is not a long-term solution for a portfolio hedge or as a safe heaven.

Negative news tends to come after more negative news, which changes investor behaviors and tends to worry investors who in turn would sell their positions in gold, thus sending the price down to original levels or even lower. Some Key Points Safe haven investments offer protection from market downswings. Precious metals, currencies, and stocks from particular sectors have been identified as safe havens in the past.

Safe havens in one period of market volatility may react differently in another, so there is no consistent safe haven other than portfolio diversity. Latest Price Action Prior to Russia’s intentions of an invasion into Ukraine and fears of war, which is creating upheaval in the political landscape in Europe and around the world, gold was steadily rising in a sideways movement. However this past week you would have noticed a sharp price action jump 3% from $1892.00 to $1973.00 USD (see below), a price that we haven’t seen since 1 st of January 2021 and there is a strong feeling that it could push past this figure as Russia ramps up its invasion into eastern Ukraine.

If this happens, we could start to see higher highs as a result, as investors are spooked by the potential turmoil and destabilization. Gold or XAUUSD, can be accessible in different forms. You can purchase gold bullion in a number of ways: through an online dealer, or even a local dealer or collector.

A pawn shop may also sell gold. You are advised to note gold's spot price – the price per ounce right now in the market – as you're buying, so that you can make a fair deal. You could also find access to gold in the following ways: Gold Futures, ETFs that own gold, Mining Stocks, ETFs that own mining stocks, or you if you wish to trade it, you could use CFDs, where you can trade the value of the shiny metal when it goes up or down.

Visit our website here to get started with a CFD trading account and start taking advantage of opportunities. Sources: www.bankrate.com, Investopedia, Tradingview.

Since the recent crisis in Europe, you would have noticed a few things in the stock market which have directly or indirectly affected your normal day to day life, as a motorist one of the first things that you would have taken note of, is the price of fuel. Only a fortnight ago petrol prices for unleaded fuel was sold for $149.99 per litre (APCO service station Cranbourne), today’s price of $186.998 (price as of 24 hours ago) marks a clear sign that prices are rising and, in most cases, have hit above $2 per litre with people predicting that it will get worst before it gets better. We will take a look at why the EV market may be positioned to take advantage of this economic pain.

EV cars have long been in the process of becoming a cleaner alternative to combustible engine vehicles. Since climate change has been at the forefront of politicians and corporations’ agendas, companies such as Tesla have managed to carve out a large portion of the market for themselves and be the leading light into the new generations of cars. Whether that be by producing the latest car in the Roadster or providing companies with “regulatory credits” which allow the companies to reach emission targets set by governance in their respective countries.

In a push to reduce carbon emissions, governments around the world have introduced incentives for automakers to develop electric vehicles in return for regulatory credits. Because Tesla only manufacturers EV cars, they get free credits and as they have a surplus amount, they can sell these credits to their competitors for them to be able to meet the latest emissions targets. That’s one way in which Tesla profits hugely from their vision as they are able to make 100% profits on these credits.

As climate change reels its head and costs of fuel soars, many believe that EVs are the best alternative to an old age problem. However for EV cars to be successfully incorporated in our communities, there has to be a few advances in infrastructure including more regular charging stations, and improved battery life, with many currently working on producing longer lasting, quicker charging and more affordable batteries. As well as this, the price of EV vehicles would need to come in line with economy combustible engine vehicles to make them more desirable.

The infrastructure for electric-vehicle charging continues to expand. In 2019, there were about 7.3 million chargers worldwide, of which about 6.5 million were private, light-duty vehicle slow chargers in homes, multi-dwelling buildings and workplaces. Convenience, cost-effectiveness and a variety of support policies (such as preferential rates, equipment purchase incentives, and rebates) are the main drivers for the prevalence of private charging.

Market Performance: Sales of electric cars topped 2.1 million globally in 2019, surpassing 2018 – already a record year – to boost the stock to 7.2 million electric cars. Electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase. Companies leading the way in manufacturing of EV cars and companies working alongside in infrastructure, battery life development and electricity providers in the field are: TESLA Volkswagen Group BMW Hyundai/KIA Jaguar Land Rover Schneider Electric SE Siemens AG ABB Eaton Corporation ChargePoint, Inc.

Webasto Group EVBox B.V. Blink Charging, Co. EFACEC Popular mentions to Delta Electronics, Inc. (Taiwan), Leviton Manufacturing Co., Inc. (U.S.), Alfen (Netherlands), NewMotion B.V. (Netherlands), Star Charge (China), SemaConnect (U.S.), Robert Bosch GmbH (Germany), and ClipperCreek Inc. (U.S.).

Some of the key players in both car manufacturing, infrastructure and battery performance which investors are keeping a close eye on, in order to take advantage of potential opportunities within the stock market. As we can gather from the research, figures and public opinion as well as Geopolitical issues affecting prices of energy, we can conclude that a change to EV cars is not longer just a pipedream but a very potential reality, with governments aligned with corporations and the public in wanting to have a change of direction from combustible engines to electricity charged vehicles. We would be able to see a huge increase or EV cars on our roads within the next few years.

Sources: CNBC, iea.org, Google, meticulousblog.org

What is an Expert Advisor (EA)? Expert Advisors (EAs) are trading software that automatically run and trade based on their preprogrammed rules for initiating, managing, and exiting trades in the market. These automated trading systems are very popular among traders and are widely used on the Metatrader 4 and 5 platforms.

For most traders, EAs are primarily used for Forex, although they can be used on any market that’s available on the platform. These can be purchased prebuilt online from a developer or created to automate an existing strategy being used. There are many reasons why traders use them, and I will explain some of the main advantages and disadvantages.

Advantages of using an EA: Discipline - these programs are set to certain parameters and will manage your positions based on the programmed strategy. Using a set of yes/no triggers it will make trading decisions and act on them instantly without changing their decisions like humans would do. It will also manage risk based on your risk settings, so you do not overexpose your account.

Timesaving – there is only so much time a trader can look at the charts for trading opportunities before getting tired while the markets are open. An EA can monitor the charts 24 hours per day and open and close positions or even provide alerts which can save time. Emotionless – this plays a huge role in the decision making for traders.

When trading with real money traders tend to make emotional decisions and break their strategy from fear or greed. An EA removes this element and will stick to the original plan although manually intervention can still be done. Backtesting – you can backtest an EA to see whether the strategy has been profitable in the past on multiple markets.

Although these can give you confidence to use them, it’s important to keep in mind that past performance is not an indicator for future performance. Disadvantages of using an EA Technical failures – for an expert advisor to work, your platform needs to be open and running at all times which means if you experience technical issues such as a crash, software update, power outages, connection problems then this will effect the EA. Additional cost of VPS – this is a dedicated private server which allows you to remove some of the technical challenges when using an expert advisor.

There are benefits of lower latency and faster execution and also the peace of the mind that the EA is running on a private server which can be accessed from any location. It typically costs around A$30 per month to have this access. World events – an EA is programmed to trade based on technical parameters, which means should there be an unexpected world event or news announcement, this would have an impact on your trades as the the market moves in response to them.

Doesn’t teach how to trade – these are coded to trade certain parameters therefore unless you understand how to code, you can only watch. Although there are many EAs which make money for people who can’t trade, if they are unprofitable then it’s back to the drawing board; that could mean finding another EA or learning to trade. Here are example how an Expert Advisor looks running on MT4 platform: If you are interested to use an Expert Advisor and seeing how these can perform and the results, you can find them on MQL5.com.

This is the largest community for developers and signal providers to showcase their systems. You will find some for free and some that will need a monthly subscriptions to have access to them. You can run expert advisors on a GO Markets trading account.

If you need any help setting them up please contact our support team.