It was estimated by the International Monetary Fund (IMF) that Iran, by the end of the year, would only have gross official reserves of around $8.8 billion.
The economic situation in Iran has been degrading for several years because of a number of factors including Iran’s use of foreign exchange reserves to keep currency values at a fixed rate. This however has consequences, including the decline of purchasing power for the people.
October 20th #MEK supporter from Mahshahr: a strike into its third consecutive day continued at the Razi Petrochemical company in Mahshahr. Workers are demanding to be paid and that there is discrimination against contract workers at the plant. #Iran https://t.co/7fuHBqSrFo
— StopFundamentalism (@SFundamentalism) October 24, 2020
It also results in inflation and the impact on the people of Iran is significant. When the exchange rate rises it increases the prices of goods that are imported – from staples such as rice and wheat to cars, electronics, and so on.
Intermediate goods are also susceptible to price increases because of the increase in currency prices. The intermediate goods used by factories are increasing and the costs of production rise which then increases the price of products meaning domestic goods are less competitive. It is very clear that this will lead to a recession.
The state-run publications in Iran are increasingly reporting about the economic situation, with Eghtesad-e Saramad recently reporting that the “erratic set” of Iran’s economy is “unrealistic” and is not based on any concrete rules or regulations. It explained that the country has been politically and economically isolated because of two factors. Firstly, “inefficient government economic policies”, and secondly the international sanctions that it has been subjected to.
"It is very clear that poverty in Iran is the flip side of the coin of corrupt policies of the government and growing massive systematic embezzlement of government institutions."#Iran#Povertyhttps://t.co/e5UZWJ4JX9
— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) December 2, 2018
The publication also referred to the consequences of the economic troubles, highlighting that there are “mafias” linked to the state in numerous economic domains, including vehicles, sugar and food, and medicine. It said that these mafias have “profited from the situation and gained astronomical wealth”.
Corruption in Iran is widespread with it being found at all levels of the regime. The regime has tried to pass the blame for economic collapse to others, but it is solely responsible. For years, the regime has been funding terrorist activities and groups. Billions of dollars have been plundered on the civil war in Syria and huge sums have been given to the Lebanese Hezbollah group.
The regime has also spent astronomical sums on its ballistic missile and nuclear programs, taking funds away for the people and directing them to malign projects.
Potatoes, bread & yogurt…
Lunch for an ordinary family of five in #Iran.
A worker cannot afford to buy meat. Even dairy products are very expensive.
— Heshmat Alavi (@HeshmatAlavi) February 19, 2019
Shahin Gobadi, spokesperson for the People’s Mojahedin Organization (PMOI / MEK Iran) said: Spending an estimated $300 billion on its nuclear weapons program.
A member of Iran’s parliament said that Iran has probably spent between $20-30 billion on Syria over the past few years, however, the main opposition to the Iranian regime, the National Council of Resistance of Iran (NCRI) the People’s Mojahedin Organization of Iran (PMOI / MEK Iran) estimates the true figure to be up to $100 billion.
Sanctions were put in place to stop the regime from plundering the nation’s wealth on terrorist activities, but the regime refuses to give up its malign goals.
#MEK #Iran has been reporting on the other protests taking place across the country too, indicating that various groups of workers and employees have been gathering to call for the payment of long-overdue salary payments.https://t.co/d9Kats2ON8 #FreeIran2020 pic.twitter.com/1UKF4K3W9F
— MEK Iran (Mujahedin-e Khalq) (@MEK_Iran) October 19, 2020
The people of Iran are fed up with the situation and over the past few years, there have been a number of significant uprisings that were sparked because of economic concerns. However, people have more grievances than just economic ones. They are fundamentally opposed to the regime and everything it stands for and is clear in their demands – they want regime change.
The levels of dissent in society are increasing and regime officials are concerned about another uprising. And the regime should be concerned because the people are not going to give up on their wishes to have freedom, democracy, and respect for human rights.
According to NCRI and (PMOI / MEK Iran), the changing of the regime is the only viable solution left to help solve Iran’s economic crisis and eliminate poverty for good from the lives of the people.
The volcanic uprising in November washed away all unfounded claims. It was proven that it is possible to inspire and organize protests. It was proven that despite all the repression and crimes, our people have a spectacular desire and readiness to continue their uprising. #Iran pic.twitter.com/Fs9hz4iSLj
— Maryam Rajavi (@Maryam_Rajavi) November 1, 2020
Mrs. Maryam Rajavi, the President-elect of the National Council of Resistance of Iran (NCRI), has said: ‘’All the promises by the mullahs to the deprived and calamity-stricken people of Iran are hollow and worthless. The only way to end poverty, destitution, and unemployment is to end the mullahs’ evil dictatorship and establish freedom and people’s sovereignty.’’