Iran has suffered double-digit inflation for more than four decades, putting the country in a state of extreme poverty and its population trying to cope with dire economic and social issues. Despite negotiations and meetings between officials, little has been done to help the Iranian people, despite the Iranian regime’s claims that there is hope for resolving the current challenges.
Economic Coordination Council
Government officials claim they have discovered the key to resolving the crisis by cutting off the Preferential Exchange Rate for basic goods and paying them directly to underprivileged people in the form of credit cards at various meetings, including the Economic Coordination Council and the private sector.
During the session, Ehsan Khandouzi, the regime’s Economy Minister, stated that the government recognizes that the Preferential Exchange Rate processes need to be modified. On the other side, economists have previously cautioned that eliminating the preferential exchange rate will result in even higher food and other basic necessities prices.
Iran’s severe economic situation
Because of Iran’s severe economic situation, boosting or decreasing the exchange rate will not address the existing problems. The state-run media has been reporting on prospects of a regime change on the horizon as a result of public unrest. They have cautioned the regime that additional inflation and currency manipulation will have serious security and social implications, as well as widen the wealth gap.
The state-run Jahan-e-Sanat newspaper published an article titled “A Look at the Crisis-Creating Phenomenon and Its Effects on Iran’s Economy” on October 19. The post concludes that the mullahs’ government is being washed away by regional countries, and an ideological-economic siege has painted a harsher view for the mullahs’ future while referring to the crises and obstacles produced between the regime and neighboring countries.
The growing gap between the regime and the people
According to Jahan-e-Sanat, the growing gap between the regime and the Iranian people has prompted society to come together to form a national movement. If the gap widens, the threat of national uprisings grows, especially as Iran’s socioeconomic problems deteriorate. The unrest among Iranian residents has been compared to a timebomb that may be detonated with just one spark.
Masood Neeli, the former secretary of the Government Economic Coordination Task Force, was cited in the state-run Hamdeli daily on October 19.
The ‘devasting wave of inflation
” The ‘devasting wave of inflation will have consequences for the economy during the second half of the Iranian calendar year ” he warned, describing the scenario as very challenging and convoluted.
“I have not seen any other period as dangerous as today in terms of inflation,” Neeli cautioned. “These floods have the potential to destroy us all.”
The government has drained the country and its people of their last rials, and the population now stands to lose nothing. Despite the regime’s suppression, this is the reason for continual protests around the country.