The Governor of Central Bank of Iran, Dr. Valiollah Seif attended the spring meeting of World Bank and International Monetary Fund, which was held in Washington D.C. on 15th-17th April 2016. Presence in the last meeting was a valuable opportunity for Iranian delegation to negotiate with senior members of other countries on banking cooperation.
At the IMF-World Bank meeting and the Council on Foreign Relations in Washington, the governor of CBI mentioned the concerns of Iran and blamed the US policies against Iran, the comments that had been highlighted by media. He cited that almost nothing has been done to help Iran re-enter the global economy and financial system. He said unless serious efforts are made by our partners, they have not honored their obligations. He also complained that Iran had not seen the expected results after implementation of the JCPOA.
In fact Iran asked western powers and especially US to fulfill the deal under the JCPOA. Iran expects to be connected to the international economic system after the nuclear agreement, but it has not been done so far. Iran has fully delivered on its commitments under the nuclear agreement.
It is an undeniable fact that Iran has difficulty accessing its foreign currency reserves frozen as a result of the nuclear-related sanctions. In case Iran wants to access its reserves, transaction must be done in US currency, which has been banned since November 2008. It means that US should change some regulation regarding u-turn transaction to allow access, the matter that US says it is not considering lifting the ban.
The so-called “u-turn transactions” are US dollar transactions by foreign banks on behalf of Iranian institutions that are indirectly processed through a US bank.
At the moment, most of European banks do not have the courage to work with Iran because of US financial penalties in the past. Such uncertainty and ambiguity can be removed by the American party through transparent guidelines and statements which help to clear the air.
Despite certain efforts which have been done by the international society, it seems they are not enough and needs to be catalyzed by the US as it had a major role in bans on Iran, effective implementation of the agreement must be done in such a way that facilitate economy and business activities.
On the other hand the Iranian parliament approved law concerning fight against financial support for terrorism and money laundering and the Central Bank obliged Iranian banks, financial and credit institutions to enforce the law. The action taken by the parliament shows Iran’s strong will to remove obstacles for coming back to the worlds economy.