MEk Iran: Financial Collapse
The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that the Iranian Stock Exchange index increased to almost two million units in August 2020, attracting a large number of people to invest in the stock exchange.
Iran’s stock market began to decline
The stock market had taken the competition away from less risky sectors of investment, such as houses, currencies, and many individuals poured their money into it. However, after a short period of time, Iran’s stock market began to decline – an issue that many government economists had anticipated would soon burst, describing it as a fast-blowing bubble that would collapse.
In the economy, there is a ratio that indicates how much of the country’s financial structure has become capital-driven.
Damaging propaganda to the country’s economy
The small shareholders are their justifications for this damaging propaganda to the country’s economy. Remarkably, many people’s agony, poverty, and death as a result of the coronavirus, as well as many other difficulties, are irrelevant to them, yet they are still allergic to the plight of minor shareholders.
The creation of a deceptive stock market boom and the preservation of the bubble in various ways has been a policy implemented over the years under the guise of micro-shareholders, but to obtain access to the people’s funds.
The general public is unable to access the country’s public resources
The fact that the country’s financial structure is so reliant on the stock market has a number of repercussions. One of the results is that small and medium-sized businesses and the general public are unable to access the country’s public resources.
Iran’s Stock Exchange is a virtual archipelago of private but government-controlled businesses run by non-governmental businesses and entities. In the name of the free market, these corporations pillage the people and the economy, therefore the capital market’s financial resources are virtually in the hands of private but government-controlled stock exchange firms.
The rises in the price of the dollar
Regarding the rise in the price of the dollar, which has increased by about 25 times in the last 10-12 years, and the effects of these entities on the dollar price, it should be noted that in order for large firms to make large profits on the stock exchange, these stock exchanges must keep the dollar price high, as well as commodity inflation, so that this ailing and crisis-ridden economy can survive.
These so-called private but government-controlled businesses benefit from a variety of government concessions, economic and political rents, and are free to sell their products at any price they want. As a result, this tendency is uncompetitive for genuine private and small businesses.
People have experienced significant losses
People have experienced significant losses as a result of the current stock market conditions, and the massive losses that have been inflicted on people as a result of the ailing economy are far more than the money that minor stockholders have lost on the stock exchange.
It’s worth noting that, while people’s wages have doubled in the last three years, their purchasing power has fallen by a fifth. People are unable to purchase a home, despite the fact that property owners’ assets have increased by 8 to 10 times.
No one in the government highlights the losses incurred as the capital market’s role in the country’s financing system and the power of rent-seeking private government-controlled firms grows. This is a fact regarding corruption, which most officials profit from.