Despite the lifting of certain economic sanctions, the U.S. still has rules which forbid U.S. banks to work with Iran, which essentially acts as a barrier for Iran to benefit from the U.S. financial system.
In the wake of Iran signing the historic nuclear deal with world powers, Iran called on the European Union and the United States to unfreeze its assets so that it can tap into the global financial system.
“They need to do whatever is needed to honor their commitments,” said Valiollah Seif, the governor of Iran’s central bank on the sidelines of the World Bank and International Monetary Fund spring meetings in Washington.
He went on to add, “Otherwise the JCPOA (Iran nuclear deal) breaks up under its own terms”.
This Thursday, Seif met with Jack Lew from the U.S. Treasury and their discussion revolved around Iran’s expectations arising from its July 2015 nuclear agreement. According to the deal, Iran would limit its nuclear program in exchange for improved access to the global economy, including the dropping of certain economic sanctions.
As per an official statement from the U.S. Treasury, Lew is said to have told Seif that the United States would keep “its sanctions-related commitments in good faith” as long as Iran continues to uphold its end of the bargain.
With foreign banks continuing to shy away from processing Iranian transactions even after the lifting of the nuclear deal related sanctions, Iran is increasingly feeling exacerbated.
“In general we are not able to use our frozen funds abroad,” said Seif.
Iran’s hopes of the rapid ending of Iran specific economic sanctions, with European banks in particular have been dashed as many companies fear falling afoul of many other restrictions imposed by the U.S., which are still in force.
“We want both sides of this agreement, especially the U.S., to take the required measures to remove the obstacles,” said Seif.
Seif has urged Iran’s partners to hold direct “face-to-face contacts” with international bankers so as to reassure them that they will not be fined or otherwise penalised for working with Teheran. Furthermore, Seif said the U.S would have to pass legislation so as to allow Iran access to its financial systems.
So far, U.S. banks are still forbidden to do business with Iran, however, other lenders do not have such restrictions. The main obstacle however is the rule that prohibits any transactions with Iran in USD through the U.S. financial system.
Categories: Economy & Finance, Geopolitics, Strategy, Uncategorized
manageria.biz 
Leave a comment