The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran) reported that economic analysts claim Iran is the only country in the world with double-digit inflation rates for more than four decades, resulting in fast poverty expansion and the collapse of economic and social infrastructure.
Public protests expand across the country
As public protests expand across the country, regime officials go to great lengths to suggest that a solution to the people’s livelihood problem is on the horizon. Despite the public’s mistrust, officials have resorted to holding a series of meetings and talking in general statements.
“In coordination with different branches of the government, the judiciary and the parliament that are in this council and this meeting, as well as private sector activists, God willing, this path will move us in the coming months to accompany the private sector with an approach appropriate to our economic conditions,” Mohammad Reza Pour-Ebrahimi, Chairman of the regime’s Majlis (parliament), said during a virtual meeting with the IRGC on October 19.
The Preferential Exchange Rate for basic goods
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 disadvantaged people in the form of credit cards at various meetings, including the Economic Coordination Council and the private sector.
Economy Minister Ehsan Khandouzi discussed “the replacement of consumer credit cards instead of allocating Preferential Exchange Rate,” adding that “the government agrees with reforming Preferential Exchange Rate procedures” during the same meeting.
Many experts have already warned that abolishing the preferential exchange rate will result in increasing costs and rising commodity prices, resulting in a major reduction in people’s tables.
The regime’s economic dilemma
The regime’s economic dilemma has taken a new form this time, and the problem cannot be “solved” by simply increasing or decreasing the Exchange Rate.
According to a report published on October 19 by the Farhikhtegan daily, various state-run media outlets have expressed concerns about regime depose and warned the ruling establishment that manipulating the Exchange Rate and unbridled inflation “will have to render severe security and social consequences in addition to widening the class gap.”
Parallel to national revolutions, regime economists are warning of the dangers of the expanding class disparity, using language like “security threat” and “the disintegration of the power structure.” When it comes to the realities of Iran’s socio-economic difficulties, however, those regime officials who are directly involved and have been testing the depths of corruption and inefficiency for years are significantly more explicit in their use of language.
The devastating flood of inflation
“The devastating flood of inflation in the second half of the [Iranian calendar] year is likely to have a variety of economic consequences. The scenario in which we find ourselves is extremely complex and convoluted.
We may be on a very dangerous path with this big amount of liquidity accumulated in the Iranian economy, which I purposely do not want to refer to with contemporary literature,” Masood Neeli, former secretary of the Government Economic Coordination Task Force, stated.
“In terms of inflation, I have never seen a period as dangerous as today.” Wrote the state-run Hamdeli daily on October 19, “these floods have the potential to destroy us all.”