Iraqi: Dollar Sanction is Desired by Both Iran and the U.S.

Abbas Araqchi, Iran's Deputy Foreign Minister for Legal and International Affairs, states that the dollar sanction is "desired by both Iran and the Americans" and emphasizes that the Islamic Republic has "no desire to use the U.S. banking system." In a live television interview with Iran's News Network on Sunday night, Araqchi referred to the problems arising from Iran's use of the U.S. financial system, stating, "Our request is to move away from dependence on the dollar and work with other currencies." He pointed out the seizure of nearly two billion dollars of Iranian assets in the U.S., asserting that entering the U.S. financial system is "dangerous due to the unfair and disrespectful rulings of its courts," adding that if this money had not entered the U.S. financial system, "the Americans could not have laid their hands on it." He also stressed that "the U.S. action in this regard is hostile, and we will definitely confront it and seek to recover this money." On April 1, the U.S. Supreme Court confirmed that the seized assets of Iran's Central Bank worth two billion dollars in a U.S. bank would be paid as compensation to the families of victims of the 1983 bombings and other attacks "related to Iran." This ruling has faced objections from Iranian officials, and in the latest reaction, Foreign Minister Mohammad Javad Zarif described the U.S. action as "contrary to international law" and a type of "theft of Iranian assets," emphasizing that Tehran does not recognize the U.S. court ruling in this matter. Recently, senior government officials have attributed the actions of Mahmoud Ahmadinejad's administration in purchasing U.S. government bonds and not removing these assets after sanctions as the groundwork for the seizure of assets, describing it as "carelessness and mismanagement." Since 2003, Iran's Central Bank has been investing through bonds in collaboration with a financial foundation called Clearstream in Luxembourg, with part of these bonds held in Citibank, leading Ahmadinejad's officials to claim that Mohammad Khatami's government is responsible for recent events, although legal efforts to seize these assets began in 2008. Regarding the U.S. Supreme Court ruling, Araqchi mentioned that Iran's introduction of a lawyer to attend the court validated the court's jurisdiction from Iran's perspective, and the Ministry of Foreign Affairs was not consulted about attending the court. Araqchi noted that using a currency other than the dollar is beneficial for Iran and other countries, stating that the dollar sanction and not using the U.S. banking system is not a nuclear sanction but one of the initial sanctions that the U.S. temporarily halted but reinstated in 2008. He emphasized that this sanction will not disappear based on the JCPOA, and while the U.S. financial system remains in the dollar cycle, the Islamic Republic has no desire to use it. Araqchi added that "the dollar sanction is desired by both Iran and the Americans," and the Americans do not want to lift it. He advised countries willing to cooperate with Iran to seek alternative solutions. In the interview, Araqchi referred to examples of Iran's transactions with other countries based on the yen, euro, rupee, and other currencies, emphasizing that the use of currencies other than the dollar in relation to Iran "is feasible and beneficial for Iran and other countries." In recent days, various statements have emerged regarding the U.S. government's actions to ease some sanctions for non-American companies willing to trade with Iran, with some American lawmakers, including Paul Ryan, the Speaker of the House, expressing their opposition to these potential actions and Iran's access to U.S. dollars. Another concern is that non-American banks are cautious about banking relations with Iran due to fears of U.S. sanctions. This was explained by Valiollah Seif, the head of Iran's Central Bank, who recently met with U.S. financial officials, stating that large banks are "fearful and hesitant" to establish banking relations with Iran due to penalties imposed by the U.S., while small and medium banks have no issues with Iran. Araqchi also mentioned that some European banks were penalized by the Americans due to their dealings with Iran during the sanctions. He added that these banks signed agreements with the U.S. Treasury and Justice Departments and committed not to work with Iran. Araqchi noted that one of the problems facing banking transactions is these agreements, which "are still valid," although "all these agreements are time-limited and most of them will expire in about a year." Araqchi also reminded that the agreements of three banks have more than a year left. In another part of his remarks, Araqchi addressed the issue of selling surplus heavy water produced in Arak, stating, "We have a warehouse in Oman for the surplus heavy water produced in Arak, where we store it and deliver it to customers." He emphasized that the allocation of a warehouse in Oman for this purpose "was not under American pressure and was done for convenience." Araqchi stated that "so far, about 200 tons of heavy water have been produced at the Arak plant," and the new reactor, which will be launched in four to five years, "requires 60 tons of heavy water." He added that "the JCPOA predicts that Iran will store 130 tons of heavy water for this reactor." According to the Deputy Foreign Minister, Iran currently has "70 tons of surplus production," and the heavy water plant is still producing, which will allow Iran to enter the market for selling this product. He stated that in addition to the U.S., which was the first customer for this product, "the Russians are also negotiating to buy 40 tons of heavy water." Araqchi mentioned that "the sale of heavy water is done in dollars, and the buyer has guaranteed that the amount will be sent to Iran through another country." Last Friday, the United States announced that it would purchase 32 tons of heavy water from Iran as part of the nuclear agreement. However, the Wall Street Journal reported that the United States, which has been a heavy water producer for about 70 years, is concerned that Tehran may not find a buyer for this material and that its heavy water reserves may increase. In this context, Zarif stated: "The theft of Iranian assets in the U.S. is illegal."