This rapid devaluation is causing high inflation, unemployment, and reduced purchasing power, all of which could lead to social unrest. The Iranian parliament held an emergency meeting on Monday to discuss the financial crisis, attended by high-level officials, including the parliament’s speaker, Mohammad Bagher Ghalibaf, and the central bank’s chief, Mohammad Reza Farzin.
Ghalibaf claimed that the government had found the perfect solution to organize the market, but his remarks were criticized by other officials and state media, as they failed to address the root cause of the crisis.
The phony claim of solving the current financial crisis fueled the regime’s infighting, with officials and state media mocking Ghalibaf’s remarks.
“If, with a one-hour meeting, you could have organized the market, why did it take you so long to hold this meeting? Does the economic team understand the effects of half a million rial for a dollar on people’s lives?” asked the former Central Bank Chief, Abdolnasser Hemmati, on his Twitter account.
The Iranian government has blamed external factors, such as sanctions, for the country’s economic woes, but the real cause is domestic mismanagement and corruption. Tehran’s focus on deflecting accountability and blaming others has only exacerbated the crisis, causing a severe budget deficit of at least 5,000 trillion rials.
To generate revenue, the Iranian regime is hiking the dollar price and implementing two different exchange rates, one for certain importers at a rate of 280,000 rials and the other for the general public. In other words, the government gives discounted prices to its cronies and imports goods at low prices to sell them at higher rates to fund its oppressive regime.
This plan could seriously backfire, leading to a social explosion amid a nationwide uprising. The state-run Jahan-e Sanat daily warned that playing with currency, gold, and coins, and manipulating the stock and capital markets would lead to an unfavorable outcome. The Sharq daily also cautioned that the economic situation would make politics tumultuous, leading to potential social unrest.
In conclusion, the Iranian government’s budget planners are turning the crisis into a social explosion, with their focus on external factors deflecting accountability and their methods of plundering only exacerbating the crisis.
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