Kerry Puts Dollar on Line in Appeal for Congress to Approve Iran Deal

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20:14 11.08.2015(updated 21:25 11.08.2015) Get short URL

WASHINGTON (Sputnik) – The US Congress’ refusal to approve the Iran nuclear deal and force allies to comply with US sanctions could lead to the end of the dollar as the world’s reserve currency, US Secretary of State John Kerry said on Tuesday.

“That is a recipe very quickly for the American dollar to cease to be the reserve currency of the world, which already bubbling out there,” Kerry warned business leaders at an event hosted by Reuters in New York.

Arguments that the United States can act “tough” and use “force” to have allied countries comply with Iran sanctions if Washington rejects the deal are not based on reality, Kerry said, adding sanctioning allies would backfire.

“Can you imagine sanctioning them [allies] after persuading them to put in sanctions to bring Iran to the negotiation table, and when they [Iran] have not only come to the table but they made a deal, we turn around and nix the deal, and then tell them that you are going to have to obey our rules on sanctions anyway?” Kerry asked.

US opponents to the Iran deal are “kidding” themselves if they think Washington can act unilaterally to impose “fraying” sanctions, Kerry said.

The US Congress has until mid-September to approve or disapprove the Iran nuclear deal reached between Tehran and world powers. US President Barack Obama would then veto the bill, requiring a two-thirds majority from the US Senate and House of Representatives to overwrite the veto.

The United States with the support of allies has implemented sweeping international sanctions to force Iran to the negotiating table over its nuclear program. The deal envisions strict international monitoring and dismantlement of Iran’s nuclear program in exchange for sanctions relief.

US sanctions related to Iran’s support for terrorism, ballistic missiles and arms transfers would remain in place, but the crippling international financial and oil sanctions on Iran would be lifted under the deal.

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