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Iran’s currency nosediving, taking the economy with it

Iran’s currency plunging at exchanges in Tehran
Iran’s currency plunging at exchanges in Tehran

Analysis by PMOI/MEK

 

Sep.6,2018On Wednesday Iran’s currency rates dropped to an unprecedented 150,000 rials to the U.S. dollar. As a result, in the span of just four days, the U.S. dollar price skyrocketed 4,000 rials.

A newspaper associated with the faction linked to Iranian regime President Hassan Rouhani warned the result of this ongoing trend is “nothing but the state’s complete bankruptcy and the crumbling of its banking system.”

It’s interesting how Valiollah Seif, the previous Central Bank chief, was sacked due to his inability to contain the currency crisis. The new Central Bank chief claimed to be able to restrain this growing dilemma. 40 days later, however, Iran’s currency surge has skyrocketed above the 150,000 rial mark.

This is the Iranian regime’s latest failure for its new currency policy, described as the “secondary market.

The Iranian regime’s own “Jahan-e San’at” daily, associated to currents in line with Rouhani, described the Central Bank as the party responsible for the latest dilemma.

“The Central Bank’s money policies resemble huge knots that are preventing policymakers from presenting comprehensive money programs. Each day the banking crises are becoming even more severe. All the while the Central Bank has decreased its authority, making it one of the main culprits in the country’s current banking mayhem.”

This same article adds, “If we want to direct the Central Bank’s money policies with the same bearing… the result will be nothing but the banking system’s complete bankruptcy and its downfall.”

Zeid Abadi, a member of Iran’s so-called reformists current, delivers a strong warning about the status quo.

“The price of currency and gold are skyrocketing at a time while our oil is still being exported. Fear the day when our oil exports drop to zero… As a result, whatever actions that are to be taken the day after sanctions, it is already too late and we should be taking such actions today. Tomorrow will be too late!”

This signals dead-end Iran’s regime is facing and the economy is crumbling to such an extent that even a change of guards at the Central Bank not only failed to render any results but allowed the impasse to continue to a point that even officials inside the regime are forecasting a complete freefall of the banking system.

Considering the fact that the Iranian regime as a whole is facing a major economic impasse, the future will only bear further crises for the mullahs’ economy.

This regime bears no political or economic capacity to rely on and resolve its economic dilemmas, especially considering the fact that severe sanctions are brewing and conditions will stir up to become far worse.

Add to this the increasing influence of the People's Mojahedin Organization of Iran (PMOI/MEK) inside Iran, especially through the growth of resistance units across the country, and you have a recipe for disaster for the mullahs’ regime.

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