The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that the economy in Iran has been declining for years and more and more people across the country are falling into absolute poverty.
Mismanagement and widespread corruption
The regime’s mismanagement and widespread corruption are to blame for this. Over the years though, regime leaders have tried to say that the country’s economic problems are down to international sanctions, economic warfare by Iran’s enemies, and a multitude of other excuses.
However, the people know that the regime is to blame and recently state-run media outlets are reporting more accurately about the situation. For example, at the end of last month, the state-run Jahan-e Sanat publication wrote that artificially keeping the price of the dollar high is an “accepted reality” and that this means “domestic policies have been the main culprit of rising prices, economic challenges, and the shrinking of the people’s tablecloths”.
Iran is the only country that has two exchange rates
Government officials used to say that the government had no say in the market price of the rial, Iran’s currency. Yet it has two exchange rates – the one declared by the government that is approximately 42,000 rials per dollar and the “real rate” that is about 250,000 rials per dollar.
Last month, the Head of the President’s Office Mahmoud Vaezi admitted that the government is involved with this so it could “run the country’s economy”. He explained that this is so Iran’s “enemies” would see that “Iran is in a position of power” because it looks like the maximum pressure policy has failed.
The regime’s propaganda
He also said that media advertisements portrayed the idea that foreign pressure was the reason why prices had increased so drastically. This is another example of the regime’s propaganda, albeit propaganda that does not work because the people know who is really responsible.
In practice, government institutions and companies, and individuals linked to the regime use official exchange rates for US dollars. They use this to buy and import goods, making huge profits when they sell to the people with the market rate. This is one more example of how the regime profits and steals from its people.
The mullahs regime malign policies
These malign policies are criticized by many, such as economists who highlight that the government is taking desperate measures to compensate for the massive budget deficit. Economists say that the Rouhani government is responsible for the mess the economy is in considering that the cabinet is in control of everything.
Once again, it is the ordinary people of Iran that are paying the price for the regime’s mismanagement. The intentional hike in the price of the currency has resulted in many items on the market seeing a dramatic rise in price. This has forced so many people across the country to plunge further into poverty.
The regime’s manipulation of the economy
Since admitting to the regime’s manipulation of the economy, Vaezi is now backtracking and saying that sanctions are the reason why the currency exchange rate has increased. He is also now saying that the government has never intentionally tried to increase the price of the currency.
The head of Iran’s Central Bank in the meantime said that it would be more appropriate for currency issues and other specialized economic matters to be commented on only by the Central Bank.