Seif: Banking Relations with the West Still Unsatisfactory, Hope for Improvement

Valiollah Seif, the Governor of the Central Bank of Iran, states that most commitments related to the nuclear agreement must be fulfilled by the United States, and "it is expected that the pace of exchanges will increase day by day." On October 16, in an interview with state television and an Iranian news agency, Seif mentioned that "the current situation is not satisfactory," although he emphasized that "compared to before the Joint Comprehensive Plan of Action, the conditions are naturally improving." The Central Bank Governor indicated that the current situation, considering the expectations prior to the nuclear agreement, is "not satisfactory." In recent months, Iranian officials have repeatedly expressed their criticism and dissatisfaction with the implementation of the nuclear agreement, emphasizing that "the U.S. has been unfaithful" in fulfilling its commitments, a claim that has been repeatedly rejected by Washington officials. Seif noted that compared to before the nuclear agreement, "a relatively suitable banking relationship has been established, and trade issues for Iran are somewhat resolved with this level of connections." However, he stressed that these relations do not mean "normalization of relations." Seif believes that Europeans are interested in establishing connections, but the U.S. has not yet "fully operationalized its commitments," leading to doubts and concerns in the international banking system regarding potential U.S. actions, and "adequate assurances must be provided." Despite lifting nuclear sanctions, the U.S. continues to impose sanctions in other areas against Iranian officials, organizations, and institutions. These sanctions include issues such as human rights violations, "state support for terrorism," and missile program development. In cases related to human rights violations, the European Union has also imposed sanctions against Iran. Seif expressed hope that conditions would improve with the commitments that the United States has agreed to fulfill. Recently, the U.S. published guidance aimed at addressing existing ambiguities regarding transactions of large foreign companies and banks with Iran. Several former U.S. officials in sanctions matters and legal experts believe that the newly published guidance from the U.S. Treasury provides banks with "reassurance" regarding conducting dollar transactions. However, the U.S. Treasury, which is responsible for overseeing financial transactions, states that this guidance only covers the sanctions lifted during the nuclear agreement and does not include current and existing sanctions. The Central Bank Governor did not directly refer to this guidance in his statements on October 16. In this context, Araqchi mentioned that the outdated nature of Iranian banks is the reason for some existing banking problems, and credit cards have officially entered the Iranian banking system. The Central Bank Governor called for support from European banks and companies.