Revelation of Obama's 'Secret License' for Currency Conversion by the Iranian Government

A subcommittee in the U.S. Senate published findings on Wednesday, June 6, indicating that the Obama administration issued a 'secret license' for currency conversion to the Islamic Republic in 2016. According to the Associated Press, after the implementation of the JCPOA, the Obama administration intended to grant Tehran access to the U.S. banking system. The report emphasizes that the issuance of this license was 'not illegal' following the nuclear agreement; however, the Obama administration 'repeatedly told Congress and the public that it did not intend to do so.' The Senate subcommittee's report states that the Treasury Department issued a license in February 2016 allowing Iran to convert approximately six billion dollars of its funds in Oman and utilize them. At that time, Iran had the equivalent of 5.7 billion dollars in Omani rials in a bank in Muscat, and to convert this amount to euros, it first needed to convert it back to U.S. dollars. The Obama Treasury issued its license for this purpose. Under the unilateral sanctions imposed by the United States against the Islamic Republic, even after the JCPOA, Tehran is unable to access part of its assets abroad. However, as reported by the Associated Press, Iran ultimately could not use the Obama administration's license for currency conversion because the two U.S. banks it approached refused to carry out the transaction. According to the Associated Press, Iran eventually resorted to 'other means' to convert its currency at the Muscat bank, though the report does not provide details. While several officials from the Obama administration have declined to comment on this matter, Rob Portman, the Republican chairman of the Senate subcommittee, stated: 'The Obama administration misled the American people and Congress; they were trying every avenue to reach an agreement with Iran.' The news of the issuance of the 'secret license' by the then U.S. government to Tehran for currency conversion comes at a time when discussions about imposing new sanctions against the Islamic Republic are ongoing. On May 8, Donald Trump, the President of the United States, officially announced his withdrawal from the signatories of the JCPOA, the nuclear agreement with Iran, and announced the reinstatement of sanctions against Tehran. Less than two weeks later, the U.S. Secretary of State intensified pressure on the Islamic Republic in his first speech in this position, announcing the imposition of 'the most severe sanctions in history' against Tehran. Now, discussions about the collapse of the JCPOA are underway, and European companies are concerned about becoming victims of U.S. financial penalties due to their relationship with Iran. In this context, as part of the European Union's efforts to save its companies from U.S. unilateral sanctions, Reuters reported on an official letter from several European countries to the U.S. Treasury and State Departments. Nevertheless, some foreign companies present in Iran are already considering exiting the country; among these companies are Maersk of Denmark and Siemens of Germany, which have recently announced the cessation of their activities related to Iran.