US Republican lawmakers voiced deep concern on Thursday about reports that the Obama administration might allow Iran to use the dollar in some business transactions, although no such plans have been announced.
US government officials said the issue is being discussed in the Treasury Department, but any policy change would not involve widespread access for Iran to the US financial system, disputing media reports suggesting otherwise.
The Obama administration is considering easing some sanctions to permit non-US companies to have some access to the US financial system for US dollar transactions involving Iran, said a US official who spoke on condition of anonymity.
The official said the matter was being studied, no decisions had been taken and that, to the official’s knowledge, none were imminent.
The underlying reason for weighing the step is that non-US companies now able to do business with Iran because of last year’s nuclear deal find it is difficult to do so without at some point touching the US financial system.
The official said such companies are getting conflicting messages from their own governments, which encourage trade with Iran, and from Washington, which emphasizes that it will enforce sanctions rigorously.
Republicans remain dead set against any effort to ease restrictions against Tehran, especially in light of Iran’s recent missile tests.
“As Iran continues to undermine the spirit of its nuclear agreement with illicit ballistic missile tests, the Obama administration is going out of its way to help Tehran reopen for business. The president should abandon this idea,” said Paul Ryan, the Republican Speaker of the House of Representatives.

CONFIRMATION FIGHT

The controversy could complicate Senate confirmation of Adam Szubin to head Treasury’s sanctions enforcement arm, Senate aides said. President Barack Obama nominated Szubin in April 2015, but he was not approved in committee until this month.
Senate leaders tried to bring Szubin up for a vote in the full Senate a few days later, but at least one senator objected, the aides said.
Republicans, who control Congress, tried to kill the international deal in which Iran agreed to curtail its nuclear program in exchange for sanctions relief. Some Republicans said they opposed Szubin because of his support for the agreement, and aides said talk of easing dollar restrictions could fuel their opposition.

Source: REUTERS, APRIL 1