The Iranian rial is in an uncontrolled freefall, with the US dollar breaking the psychological barrier of 960,000 rials on August 25. State-run media are now warning that the currency is on the verge of an “explosion,” driven by the political uncertainty surrounding negotiations in Geneva and the looming threat of the European states triggering the snapback mechanism to restore international sanctions.
This is not merely an economic indicator; it is a direct assault on the livelihoods of millions of Iranians. The currency’s collapse immediately fuels rampant inflation, causing a new wave of price hikes for essential goods. As one state-run website warned on August 25, the price of medicine, medical equipment, wheat, oil, and meat are all set to skyrocket. This devastating reality was bluntly confirmed by regime economist Ehsan Soltani on August 20, who admitted, “inflation goes up because the price of the dollar goes up.” The impact on ordinary citizens is catastrophic. A worker earning a monthly salary of 100 million rials saw their income plummet from the equivalent of $117 to just $104 almost overnight—a theft of over 11% of their earnings in a single currency jump.
A deliberate “mafia economy” at work
This economic collapse is not a result of mismanagement but of a calculated policy designed to plunder the Iranian people. The vast difference between the rial’s collapsing value and its official rate is not lost; it is systematically siphoned directly into the regime’s coffers. This illicit income is used to cover the mullahs’ massive budget deficit and to fund its machinery of domestic oppression, regional terrorism, and proxy wars.
This is a structural feature of the regime’s “mafia economy.” On August 20, the state-run “Iran Jib” website directly implicated Masoud Pezeshkian’s Ministry of Industry, stating that its actions had “opened the way for the dollar to become more expensive.” Reinforcing this, economist Ehsan Soltani explained that the current crisis is the result of a deliberate “will that allows public resources to be seized for the benefit of a select few.” This policy has led to the immense enrichment of a small, powerful minority connected to the regime while the general population is pushed deeper into poverty.
Debunking the regime’s false solutions
To mask this systemic plunder, the regime periodically announces superficial “solutions” designed to deceive the public and the international community. The latest of these is a much-publicized “anti-speculation tax law,” which claims to target profiteering in the housing, auto, and currency markets.
However, this law is a complete farce. As regime experts themselves admit, there is no genuine private sector in Iran. The economy is monopolized by a mafia of individuals and institutions dependent on power who control everything from essential commodities to financial markets. For example, Soltani told the Tejarat News website that the entire tea market is controlled by just two people, and livestock feed by one. This law is a smokescreen designed to ignore the real speculators: the regime’s own corrupt officials and their cronies. Meanwhile, regime officials like MP Jalal Mousavi offer empty words, acknowledging the “devastating domino effects” of the currency crisis on families while merely calling on the Central Bank to act—a hollow gesture that deflects from the regime’s role as the root cause of the crisis.
The only viable path forward
The truth is that the clerical regime cannot and will not stabilize the economy, because its survival depends on the crisis it creates. The constant fluctuation of the dollar is a primary source of “mafia-style income” for the ruling clique, allowing them to loot the nation’s wealth with impunity. As long as this corrupt and repressive regime remains in power, Iran’s economy will continue its descent, and the national currency will be rendered worthless.
Therefore, the restoration of Iran’s economy and the value of its currency can only be achieved through fundamental political change. The only genuine solution is the overthrow of this mafia regime by the Iranian people and their organized resistance.