The rial plunged once again, dropping to an exchange rate of 170,000 rials to one U.S. dollar on Tuesday. The rate for euros was 185,000 rials for one euro. Iran’s currency has been in free fall for the past year, due to the country’s economic unrest, according to a recent statement from Mrs. Maryam Rajavi, President-elect of the

.

Regime President Hassan Rouhani appointed a new Central Bank chief in July and promised as recently as August 15th that Iranian currency would stabilize. The rial is still dropping in value, though, as is the “Bahar-e Azadi” gold coin, which was trading at 47.4 million rials as of Tuesday, according to the state-run ISNA news agency.

A Crisis Rooted in Government Corruption

The Jahan-e San’at daily described the source of Iran’s currency crisis, writing, “The starting point of this economic fiasco is rooted in the government’s currency policies.

The primary problem is that regime agencies and the IRGC have a monopoly over Iran’s oil and petrochemical export industry, which allows them to profit from the currency crisis. The regime set the currency rate at 4,200 rials per U.S. dollar. Individuals associated with the regime purchase U.S. dollars at this rate and then sell them on the black market for much higher prices. On Wednesday, prices on the black market soared to 200,000 rials per U.S. dollar. Those within the Iranian regime have no personal financial incentive to resolve the economic crisis because they profit from it.

Iran’s state-run media agrees that the regime is to blame for the currency crisis, as do the regime’s experts. In a recent interview with a state-run media outlet, one of the regime’s own experts said this: “The banks and financial institutions owe the Central Bank at least $23.8 billion (based on the government fixed rate of 42,000 rial/dollar) and far more to the people. The government and the parliament decided to increase currency prices to provide for this budget.”

Skyrocketing Prices and the Death of the Middle Class

The result of the devaluation of Iran’s national currency is a surge in prices around the country, which has drastically increased the price of necessities. One of the first consequences of skyrocketing prices is an increase in the number of people living below the poverty line, say regime experts.

Currently, more than 80 percent of Iran’s population lives below the poverty line. Meanwhile, those who buy up U.S. currency at the fixed rate and sell it on the black market get richer. The gap between rich and poor widens and the middle class shrinks more every time the rial rises.

Rouhani claims that the currency devaluation will lead to increased exports and additional revenues, with a boom in non-oil exports. Even if this statement were possible or true, it could not possibly offset the economic losses caused by the continued devaluation of the rial.

In addition, the devaluation of the rial impacts inflation and production and raises the prices of imports. Production is already an issue in Iran, with numerous factory closures causing production delays, as well as months-long delays in salaries for workers.

A Democratic Alternative

The economic crisis has caused many Iranians to take to the streets to protest over the past year. The current uprising, which began last December and continues today, began because of economic concerns and soon spread to widespread calls for regime change. Because all of the people of Iran are affected by the regime’s corruption and mismanagement, people from all walks of life have joined the call for a democratic alternative to the mullahs’ oppressive rule and have joined the MEK in the fight for a free Iran.

Staff Writer

 

 

In the first week of September, Iran’s Supreme Leader Ali Khamenei addressed the regime’s Assembly of Experts, asking them to lie about the dire economic condition in order to escape the public’s reaction. He talked about how officials should handle the economic crisis and warned that the plight of the Iranian people should not be overstated!

Understated or Overstated!

Khamenei used his address to call on senior officials and remind them that pessimism should be kept to a minimum publicly. On the Supreme Leader’s official website, the statement blamed exaggeration about the economic crisis for intensifying “the anxiety of public opinion”.

The statement also said exaggeration “causes the pessimism virus to spread. It is not correct to speak in a way that the audience is terrified and thinks that all is lost”.

It appears that Khamenei would rather see the dissemination of lies and falsehood, than accurate reporting about the dismal state of the Iranian economy.

August 31
Tehran, #Iran

A sign reads:
"Urgent kidney sale – Blood type A+ – Tested – Male, 31, young – To pay for mortgage & education fees – Urgent – For Sale"

(Phone number)

80% of Iran's population lives in poverty & the mullahs are constantly plundering the people. pic.twitter.com/djIHH5kBB8

— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) September 2, 2018

An Economy in Disarray

The economic crisis in Iran has been intensifying for months. The value of the rial plummeted after the US reintroduced sanctions against the Iranian regime.

Following the United States’ withdrawal of the 2015 Iran nuclear agreement, the Trump administration made it clear that any company doing business with Iranian regime would lose access to the US market. Faced with the choice between Iran and the US, many companies and multinationals cut their business ties with Iran.

Sep 11 – Yazd, #Iran
Retired workers & long-term nurses protesting poor living conditions & seeking answers to their demands.
A sign reads: "How can we live with 1/3 of the poverty line income?"#IranProtests

(Source: #MEK network inside Iran) pic.twitter.com/OeeE8qKr3N

— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) September 11, 2018

The Iranian regime attempted to mitigate the losses by appealing to European governments to stop the international exodus from Iranian markets.

But Rouhani and Khamenei’s attempts did not yield results. European nations had no desire to enter the dispute on the side of the Iranian regime and risk their own access to the American market.

However, the economy was already in turmoil. Years of economic mismanagement at the hands of the mullahs and systemic corruption has hollowed out the Iranian economy and the country’s financial institutions.

All across Iran, livelihoods are being lost. Goods are becoming more expensive, and poverty levels are soaring. So far, the government’s attempts to stop the free-fall of the rial have proven ineffective.

Since the economic crisis began, the regime officials have done everything they can to ignore the problem or pass the blame onto another party. They have attempted to lay the blame on the activities of foreign powers, but the mullahs only have themselves to blame.

The regime has systematically funneled billions of dollars out of Iran, supporting militia groups and terrorist organisations across the Middle East. This money could have gone towards alleviating the economic pressure of the Iranian people.

Regime officials have ignored pressing social and environmental issue plaguing Iran for years. They have been content to divert money into their own pockets at the expense of the population.

During his speech, Khamenei said, “no government can go on without the support and trust of the people”. He knows that the mullahs’ day of reckoning is coming. All that remains to be seen for how long the regime can hold on.

Staff Writer