According to the report by The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), Ebrahim Raisi, who will take over as President next month, convened a meeting with the regime’s economists late last week. Economist Massoud Nili raised the most alarming concerns.
He brought the participants’ attention to the impending emergence of hyperinflation in Iran, warning that uncontrollable inflation is imminent.
The Central Bank released a report on the status of monetary indicators in 2020 a few days later, focusing on the enormous expansion of liquidity. Following the release of this data, Massoud Khansari, the head of the Tehran Chamber of Commerce, tweeted on the increase in liquidity, writing: “According to Central Bank statistics, the amount of liquidity has exceeded 3700 trillion tomans and has doubled compared to two years ago.”
“The repercussions of rising liquidity and inflation have been reported in the past, but no measures have been implemented. As a result of this pattern, the government would face unprecedented inflation in the following months,” Khansari predicted.
On July 7, the state-run Jahan-e Sanat daily reported, “US economic sanctions have been the pretext used by our governments in recent years, especially the Eleventh and Twelfth Governments, to justify the weaknesses of their management and unbridled inefficiencies in all areas of the economy.”
Because of the regime’s disastrous policies and corruption, Jahan-e Sanat acknowledges that even if all sanctions are withdrawn, Iran’s economy wouldn’t revive.
Due to the lack of a strategic economic plan in the previous governments, the key to saving the country’s economy from the vortex in which it has been stuck for a long time can no longer be found only in the golden claws of lifting foreign sanctions,” Jahan-e Sanat acknowledged.
Rouhani stated on March 17 of last year that many economic analysts predicted that Iran’s inflation would approach triple digits by the end of the year.
“They wrote it in the newspapers and said that Iran’s inflation will be in triple digits and become as bad as] Venezuelan [inflation],” Khansari continued.
Meanwhile, former Central Bank Director Abdul Nasser Hemmati, who entered the race for the presidency, has repeatedly stated in his propaganda interviews that he averted Iran from becoming the next “Venezuela.”
Furthermore, the 2020 reports offer alarming information. Following the announcement of historic liquidity growth, the Statistics Center released a report revealing that inflation in the winter of 2020 was in the triple digits, at 558 percent.
This is in a context where the US dollar climbed more than 60 percent last year against the Iranian rial. This new inflation figure means that the price of items imported from abroad has increased 6.5 times in one year.
Venezuela, Sudan, and Zimbabwe are now the three most inflationary countries in the world, according to Trading Economics, with inflation rates of 2719.50 percent, 363.1 percent, and 194.07 percent in April.
Venezuela’s economy crashed not long after inflation was restricted to between 10% and 30% and in 2015, Venezuelan inflation reached the world record. The rate was more than 100 percent, and then the rate hit 700 percent in 2016, and nearly 2000 percent in 2017.
The government’s budget imbalance, caused by dwindling oil income and unplanned support packages, has pushed the government to print more money to fund its expenses, resulting in hyperinflation.
Although inflation was initially limited to between 10 and 30 percent, it was not long before Venezuela’s economy collapsed.