Weather New York, NY +20°F

Regions

US does not plan to grant Iran access to US financial system

April 5
4:59 AM 2016

The Barack Obama-led US government doesn't want to give Iran access to its financial system. US President Obama said US is not looking to permit the use of its financial system in the dollar-denominated deals with Iran. US further clarified that foreign companies could deal through European banks. Some US lawmakers are in favor to reauthorize sanctions on Iran.

The US government is considering several options and different mechanisms to allow for dollar trade, while stopping short of normalizing banking transactions. The US Treasury Department and State departments have denied to comment on this issue. Officially, no information was available on preparations to allow Iran limited access in dollar-denominated transactions.

Mark Toner, a spokesperson at US State Department, has confirmed that the government is not planning to grant Iran access to the US financial system. Toner told the media at a briefing that "the administration has not been and is not planning to grant Iran access to the US financial system." The US Administration says foreign companies may work through European banks, as reported by Reuters.

European and Asian banks are reluctant on doing financial deals with Iran owing to fears that this might turn up against US Treasury and its regulations. There's ban on Iran in doing dollar-denominated deals. The US Treasury is exploring ways on how to issue licenses to offshore dollar clearing houses for select Iranian financial institutions.

The Wall Street Journal (WSJ) has published a news story highlighting that US is favoring giving limited access to Iran on dollar-denominated deals. The Barack-Obama led US government is said to have been preparing a plan on giving limited access to Iran on dollar-transactions. This is part of lifting sanctions against the country. However, there's rising criticisms against limited access in Iran. Despite the landmark nuclear deal in 2015, Iran has not been given any major economic benefit.

US lawmakers are putting in efforts to re-authorize sanctions against Iran despite the recent nuclear deal. Barack Obama gives Iran an access to the US financial system, flouting the terms of his cherished Iran deal. Political observers feel that Obama and his subordinates blatantly lied to the Congress to get the order approved on Iran nuclear deal. 

While Jihadists mass-murder attacks rise alarmingly as armed forces such as Hezbollah and Quds move forward, the Obama deal allows Iran with over $100-billion relief in sanctions. By not allowing Iran accessing US financial system is a very critical restraint. Given that US dollar is the world's reserve currency, it can impact its economy should the country be denied to transact the said currency. The Iran Revolutionary Guard Corps control Iran's economy, as reported by National Review.

The US Treasury doesn't require Congressional approval in giving access to Iran on dollar-denominated transactions. American law stills prevents US and other foreign banks from dealing with Iran in dollar-denominated transactions. The US Treasury Departments considers Iran's financial system as a primary money laundering concern. 

© 2017 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics