According to the Iranian opposition, the National Council of Resistance of Iran (NCRI), and the Mojahedin-e Khalq (PMOI/ MEK Iran), Iranian President Ebrahim Raisi has stated that his government will neither aim to enhance liquidity in the country or increase the country’s monetary base. His administration would also strive to reduce the budget deficit and inflation.
The country’s production has been destroyed
Since the country’s production has been destroyed and its national wealth has been spent on the export of terrorism, anti-national missiles, and nuclear projects under the clerical rule, the country’s production has been destroyed and its national wealth has been spent on the export of terrorism, anti-national missiles, and nuclear projects. The regime is facing a massive fiscal deficit as a result of the sanctions imposed on it as a result of these policies, which have blocked off the country’s sources of revenue.
As a result, the administration is compelled to rely on fiat money poured into the country’s economy to compensate for this loss. This move has raised market demand, and while the prices of commodities in the market have been balanced with the dollar, this fiat money is losing its value against the dollar all the time, and the price of commodities is rising. As a result, a rise in liquidity raises inflation.
Prices will eventually bear the brunt
Prices will eventually bear the brunt of the newly produced liquidity and the absence of economic development. It is currently depleting people’s means of living.
“90 percent of the country’s liquidity is in the form of bank deposits, and 90% of these bank deposits are in the hands of 2% of depositors,” according to an expert from the regime’s Economic Research Center of Parliament.
This means that Iran’s state media is inaccurate in claiming that only 2% of the country’s population controls the country’s wealth; rather, just 2% of the country’s “depositors,” which include regime leaders, their children, and affiliates, control 80% of the country’s money.
Challenges and raise pay without creating money
Raisi argues that throughout his tenure at work, he was able to resolve economic challenges and raise pay without creating money or expanding the monetary base.
Those words come at a time when the government has lost at least 70% of its oil exports and is facing a $946 billion budget shortfall, which equates to a 50% budget deficit.
Of course, releasing fiscal papers is another approach to finance the budget deficit. According to the regime’s economic ministry, instead of borrowing money from the Central Bank, the government was able to earn $640 million by selling fiscal papers.
As per analysts, the result will be a rise in people’s poverty. The issue of fiscal documents aids the government in deferring its debt, but it is also a crisis for the government, which is in the midst of an economic downturn.
“future selling,” holding Iran’s economy
The distribution of fiscal papers equates to “future selling,” holding Iran’s economy hostage, and handing current issues down to future generations.
The situation is so dire that Raisi’s decisions are being questioned even by state-run media.
“While government officials point to non-borrowing as their most important achievement, a survey of the central bank’s recent report shows that the government has continued to move towards banks so that the daily decline in the number of interbank transactions and the mild slope of interest rates in the interbank market indicate that the level of surplus reserves of banks in the interbank market has been accompanied by a sharp decline. That’s the result of the government’s fiscal behavior.
The government has withdrawn from the banks
“As a result, the government has withdrawn from the banks’ resources to finance its costs instead of borrowing from the Central Bank, which because of withdrawing over the specified ceiling, the banks have no reserves with the Central Bank.
“Therefore, as a result, there is no difference in the whole story, and the Central Bank has no choice but to create money to provide overdrives and conversions,” wrote Arman daily, on October 23.