The real cause of the economic crises in Iran
Iranian state media in recent days have acknowledged some facts about the country economic crisis and how corruption and the regime’s bad policies have destroyed Iran’s economic infrastructure. Eventhe engineering numbers concerning economic statistics couldcleared by state media show the plight of Iranians facing poverty, inflation and other hardships.
“In a recent report, the Iranian Statistics Center referred to the situation of the Gini coefficient in Iran, which shows that this coefficient had an increasing trend in 2010s. This means that economic inequalities and social class gaps have widened considerably, ”the government wrote. Resalat every day Tuesday 11 May.
Resalat further states that “the country’s economy experienced negative economic growth from 2017 to 2019, and an increase in the exchange rate caused inflation to skyrocket, and promises such as the reduction of class differences , corruption eradication, economic prosperity and job creation have failed. ”
The rise in inflation and the exchange rate is due to the diet Corruption.
On February 26, Mahmoud Vaezi, chief of staff to the president of the Hassan Rohani regime, said: “We have increased the dollar exchange rate to control the Iranian economy.”
He admitted that “Economically, the exchange rate in Iran is not 25,000 or 27,000 tomans per dollar, and we did it to be able to run the economy of the country. Whereas today the enemies say “maximum pressure” has failed, and they are looking for a solution, and today Iran is in a position of power. “
According to Vaezi, the regime increased the exchange rate to compensate for its budget deficit.
In addition, the regime began unprecedented ticket printing, resulting in increased liquidity and, subsequently, the rate of inflation. In this regard, the government Vatan-e Emrooz Tuesday admitted that “out of a total of 8 years under the ninth and tenth governments, the Central Bank printed about 80 trillion tomans of money.”
This printing of banknotes has increased the liquidity rate, and as Iran’s liquidity growth is coupled with negative economic growth, the rate of inflation and the prices of goods have exploded.
According to Vatan-e Emrooz, “A review of the recent Central Bank report, which shows a 40.6% growth in liquidity in 2020, indicates a worrying growth of this variable in 2020. By the end of 2020, the amount of liquidity in the country reached 2.4 trilLion Tomans, which, taking into account liquidity growth of 40.6% in the 12 months ending February 2021, the total amount of liquidity at the end of last year reached 3.7 trillion tomans. ”
– NCRI-FAC (@iran_policy) May 11, 2021
Thus, according to Vatan-e Emrooz, “In 2020 alone, the volume of liquidity increased by 1003 trillion tomans.”
As a result, Iran’s inflation rate is increasing every day, increasing Iran’s misery index. “The misery index, which is the result of inflation coupled with unemployment, was estimated at 46.1% at the end of last year,” the government wrote. Setare Sobh Tuesday.
“The misery index at the start of 2021 set a new record. This includes an inflation rate of 36.4% and the unemployment rate of 9.7%, which reached 46.1%. This is the index of the highest poverty rate of the last decade ”. Setare Sobh added.
Sanctions or regime, which one to blame for the Iranian economic crisis?
The regime and its apologists are trying to blame the sanctions for the Iranian economic crisis. Yet the facts presented above by the state media confirm that the regime’s bad policies and corruption are the real reason for the economic crisis in Iran.
“The policies of liberalization, privatization, deregulation, monetization and commodification of social and economic phenomena are responsible for the country’s current economic, social, cultural and political crises after the war,” the state wrote. Sharq every day on May 8.
Since people know that the regime is behind Iran’s economic problems, public hatred of the regime has increased. So, Sharq daily reflects the regime’s fear of another major uprising by the army of the hungry.
According to Sharq article, “The contribution of the devaluation of the national currency is the most important factor of macroeconomic destabilization, stagflation, widespread unemployment, unprecedented socio-economic inequalities; the astronomical wealth of civil servants; unprecedented corruption in the administrative, cultural and social context; continued weakening of the purchasing power of the population and crisis in the livelihoods of a large population of society; social harm, including the spread of opium addiction; the growth of crime; the rate of violence and suicide, and prostitution, the growing number of child laborers, the brain drain and threats to socio-political security. ”