US considers easing ban on dollars to help Iran, officials say

Associated Press

WASHINGTON

The Obama administration is considering easing financial restrictions that prohibit U.S. dollars from being used in transactions with Iran, U.S. officials said. Angry lawmakers countered that Tehran would be getting more than it deserves from last year’s nuclear accord.

While no final decision has been made, officials told The Associated Press the Treasury Department has prepared a general license permitting offshore financial institutions to access dollars for foreign currency trades in support of legitimate business with Iran, a practice that is currently illegal.

Several restrictions would apply, but the change could prove significant for Iran’s sanctions-battered economy. It also would be highly contentious in the United States, where Republican and some Democratic lawmakers say the administration promised to maintain a strict ban on dollars along with other non-nuclear penalties on Iran after last July’s seven-nation nuclear agreement.

“These reports are deeply concerning, to say the least,” House Speaker Paul Ryan said Thursday in a statement. “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.”

The nuclear pact provided Iran with billions of dollars in sanctions relief for curtailing programs that could lead to nuclear weapons. But the Iranians say they haven’t benefited to the extent envisioned under the deal because of other U.S. measures linked to human rights, terrorism and missile development concerns.

Because of its status as the world’s dominant currency, the dollar often is used in money conversions. American sanctions block Iran from exchanging the money on its own.