Caving in, once again
Lead Summary
By
Rep. Tom Cole-
Since the Iran nuclear agreement was announced last year, the terrorist regime has made it abundantly clear that it has no intention of keeping its end of what was already a very weak agreement.
Tellingly, Iran has demonstrated contempt for the United States and the Obama administration by testing ballistic missiles suited for nuclear warheads and openly abusing human rights.
Considering that Iran has been designated by the State Department as a sponsor of terror since 1984 and given the regime’s dishonest history, the vast majority of Americans have always been suspicious that Iran would eventually violate both the letter and spirit of the so-called deal.
But it’s particularly galling to learn that the Obama administration is preparing to unilaterally make further concessions that would further the Iranian regime’s ability to engage in terrorist activities and strengthen its military capabilities. The latest scheme under consideration would jeopardize our own national security, destabilize the world’s financial system and lead to increased volatility in the Middle East.
As negotiated by the Obama administration, the nuclear agreement with Iran eased international sanctions in an attempt to offer economic relief to Iran and allow other countries to conduct business there.
However, it was recently reported that the U.S. Treasury Department is planning to aid non-U.S. companies and Iran in processing business transactions. This discovery comes after numerous assurances to the contrary that the Iranian national currency, the rial, wouldn’t touch the U.S. dollar.
For example, just last summer, Treasury Secretary Jack Lew explained, “Iranian banks will not be able to clear U.S. dollars through New York, hold correspondent account relationships with U.S. financial institutions, or enter financial arrangements with U.S. banks.”
While administration officials claim the process for helping Iran do business won’t open access to the American financial system, that claim is disingenuous at best.
According to findings by the Associated Press, “The new guidance would allow dollars to be used in currency exchanges as long as no Iranian banks are involved…No Iranian rials can enter into the transaction, and the payment wouldn’t be able to start or end with American dollars.”
Further explained, even though the U.S. dollar wouldn’t be the first level in the exchange, the administration is still recommending that our dollar serve as a secondary middleman for currency conversions between Iran and other non-U.S. companies. So while it is technically true that the Iranian rial wouldn’t be exchanged directly to U.S. dollars, Iran would still gain indirect access to the U.S. financial system if our currency is part of the equation at all.
America’s is the strongest currency and financial market in the world. Without access to that system, Iran will not be viewed as a serious player – and that’s how it should remain.
Allowing even indirect access to the U.S. dollar dangerously legitimizes Iran’s standing in the world. I am disappointed, but not surprised anymore, that the Obama administration is once again being out-negotiated and bamboozled by the dangerous regime in Iran.
Currently serving in his seventh term, Rep. Tom Cole was elected to Congress in 2002. Identified by Time Magazine as "one of the sharpest minds in the House," Rep. Cole is an advocate for a strong national defense, a tireless advocate for taxpayers and small businesses. Since 2009, Cole has served on the House Appropriations Committee, where he is chairman of the Subcommittee on Labor, Health and Human Services, Education and Related Agencies. He is also assigned to the Subcommittees on Defense and Interior. A former college instructor in history and politics, Rep. Cole holds a B.A. from Grinnell College, an M.A. from Yale University and a Ph.D. from the University of Oklahoma. Cole has been a Thomas Watson Fellow and a Fulbright Fellow at the University of London.
Tellingly, Iran has demonstrated contempt for the United States and the Obama administration by testing ballistic missiles suited for nuclear warheads and openly abusing human rights.
Considering that Iran has been designated by the State Department as a sponsor of terror since 1984 and given the regime’s dishonest history, the vast majority of Americans have always been suspicious that Iran would eventually violate both the letter and spirit of the so-called deal.
But it’s particularly galling to learn that the Obama administration is preparing to unilaterally make further concessions that would further the Iranian regime’s ability to engage in terrorist activities and strengthen its military capabilities. The latest scheme under consideration would jeopardize our own national security, destabilize the world’s financial system and lead to increased volatility in the Middle East.
As negotiated by the Obama administration, the nuclear agreement with Iran eased international sanctions in an attempt to offer economic relief to Iran and allow other countries to conduct business there.
However, it was recently reported that the U.S. Treasury Department is planning to aid non-U.S. companies and Iran in processing business transactions. This discovery comes after numerous assurances to the contrary that the Iranian national currency, the rial, wouldn’t touch the U.S. dollar.
For example, just last summer, Treasury Secretary Jack Lew explained, “Iranian banks will not be able to clear U.S. dollars through New York, hold correspondent account relationships with U.S. financial institutions, or enter financial arrangements with U.S. banks.”
While administration officials claim the process for helping Iran do business won’t open access to the American financial system, that claim is disingenuous at best.
According to findings by the Associated Press, “The new guidance would allow dollars to be used in currency exchanges as long as no Iranian banks are involved…No Iranian rials can enter into the transaction, and the payment wouldn’t be able to start or end with American dollars.”
Further explained, even though the U.S. dollar wouldn’t be the first level in the exchange, the administration is still recommending that our dollar serve as a secondary middleman for currency conversions between Iran and other non-U.S. companies. So while it is technically true that the Iranian rial wouldn’t be exchanged directly to U.S. dollars, Iran would still gain indirect access to the U.S. financial system if our currency is part of the equation at all.
America’s is the strongest currency and financial market in the world. Without access to that system, Iran will not be viewed as a serious player – and that’s how it should remain.
Allowing even indirect access to the U.S. dollar dangerously legitimizes Iran’s standing in the world. I am disappointed, but not surprised anymore, that the Obama administration is once again being out-negotiated and bamboozled by the dangerous regime in Iran.
Currently serving in his seventh term, Rep. Tom Cole was elected to Congress in 2002. Identified by Time Magazine as "one of the sharpest minds in the House," Rep. Cole is an advocate for a strong national defense, a tireless advocate for taxpayers and small businesses. Since 2009, Cole has served on the House Appropriations Committee, where he is chairman of the Subcommittee on Labor, Health and Human Services, Education and Related Agencies. He is also assigned to the Subcommittees on Defense and Interior. A former college instructor in history and politics, Rep. Cole holds a B.A. from Grinnell College, an M.A. from Yale University and a Ph.D. from the University of Oklahoma. Cole has been a Thomas Watson Fellow and a Fulbright Fellow at the University of London.