MEK: Iran´s Financial Collapse
According to the Iranian opposition group The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), following the introduction of members of Iranian President Ebrahim Raisi’s economic team, it became evident that this government and its team do not have a precise strategy for the country’s development and economic boom, as they had previously said.
Neglecting conventional international and regional economic
Instead, who can obtain more access to the country’s resources and wealth is their primary concern. Supporters of the so-called “Resistance Economy,” who stand to make enormous money as a result of this program, now control the country’s primary economic veins.
Without even using international economic systems and neglecting conventional international and regional economic procedures, the country is heading away from any development.
“Islamic Economy” plan with no clear goal
For example, Raisi’s economy minister feels that “in the context of sanctions, the implementation of the Financial Action Task Force (FATF) demands will make the country’s economic life more difficult,” according to a report published in March 13 by the state-run website Alef.
Reza Fatemi, the Minister of Industry, who previously held the position of “Astan Quds Razavi Endowment Productivity Foundation and Astan Quds Razavi Investment and Partnership Management and Astan Quds Razavi Deputy Governor,” a strange and ambiguous position, has launched an “Islamic Economy” plan with no clear goal.
Secret circumvention of sanctions as a solution
Hojjatollah Abdul Maleki, Minister of Labor and former member of the Board of Trustees of the Imam Khomeini Relief Foundation and the Central Insurance Jurisprudence Council proposed a secret circumvention of sanctions as a solution to the unemployment crisis and poor living conditions of 40 million working community households.
Because he is opposed to creating economic links with the rest of the world.
Many economists who are part of this rent-seeking mafia expressed alarm shortly after such appointments.
The country is facing major economic challenges
The Chamber of Commerce’s Mohsen Jalapour questioned the competence of these individuals, stating that the country is facing major economic challenges and that if no solutions are found, the country will face much greater problems.
Kamran Nodri, an economic government expert, also expressed his concerns about accelerating inflation by assessing the future of the country’s economic situation and said: “Seeing inflation of 45% in August, the fundamental cause of high inflation is liquidity growth, which was followed by the government’s large withdrawals from the Petty Cash account to finance the budget deficit and has greatly increased the monetary base.
Inflationary expectations are now on an increasing circuit
With the coming of the new government in Iran, inflationary expectations are now on an increasing circuit and its impact the continuation of the upward trend of inflation,” according to ISNA, on August 26.
We can learn about the government’s crises by taking a quick look at these expressions. The government’s budget imbalance is one of the most pressing issues. According to the Treasury Department, the Treasury petty cash account provided 24.5 percent of the government’s resources in the first four months of this year. That is, the Central Bank creates money by printing it.
Oil exports are about 9 percent of the approved budget figure
“During the same period, only 11.6 billion tomans of revenues resulted from oil exports and petroleum products, which is about 9 percent of the approved budget figure for this period.” State-run daily Eghtesad Online wrote on August 29.
Surprisingly, just 5 trillion tomans of Islamic financial bonds have been sold during this time, while the government has failed to sell over 20 trillion tomans of other publicly traded bonds.