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The Iranian regime’s efforts to control the collapse of the rial won’t prevent economic bankruptcy

An economic expert: "we will face a great stagnation.”
An economic expert: "we will face a great stagnation.”

Analysis by PMOI/MEK

 

Iran, Dec. 19, 2018 - Government economic expert Hossein Raghfar pointed out to the fragile economic situation of Iran, saying “Our analytics show that even by setting the dollar exchange rate at 42,000 rials, which the government adopted last year, we will face a great stagnation.” The dollar exchange rate was 35,000 rial in Iran’s budget for the 2018 fiscal year.

“Many manufacturing units will be closed down and the result is vast joblessness,” he added. Raghfar also stressed that the reduction of the dollar exchange rate is necessary for “economic, social and even political unbalance and instability.”

 

Dollar exchange rate falsely blew sky-high

Raghfar blamed the regime’s president government for the increase of the dollar exchange rate, “It was a psychological game mixed with political and social considerations,” he said. “They wanted to depict a picture that the prices increased due to sanctions, but they managed the issue afterward and decreased the prices. This is a common trick to manipulate public opinion to spread a sense in the society that the dollar exchange rate has decreased. However, the fact is that the price of the dollar has increased threefold in 10 months.

“Our calculations show that Iran’s economy will become bankrupt even by setting the dollar exchange rate at 80,000 rials. Even in this case, a huge pressure will be applied to the production section and families. So do the math if the price goes over 80,000 rials,” Raghfar stressed.

 

The anticipation of inflation between 80% and 100% by the end of the year

Raghfar also stated that the regime itself is raising the exchange rate of the dollar in a bid to compensate the government deficit, “In my opinion, one of the government’s ends from increasing the dollar exchange rate was to compensate for the budget deficit. However, it did not work and they could not compensate the deficit. We have an unprecedented rise in goods’ prices, and our assessments show that if the dollar exchange rate even remains as what it is, we will face inflation of 80 to 100 percent which will cause critical consequences for authorities.”

Raghfar pointed out to the intentional raise of prices by the government of regime president Hassan Rouhani, “We can see the sign in many services and goods offered by the government, including the airlines’ ticket prices. The government planned to provide part of its deficits and bank losses especially private banks.”

 

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