An Iranian professor of economy said that the regime’s speedy solution to access its needed funds was to take money from Iranians and weaken the national currency. “Given the limitations of foreign exchange revenues, it seems that today the entire government has decided to solve the problem at the expense of the people,” Hossein Raghfar said.
He implied that the senior officials in the regime were behind the fall of the rial.
“No one knows who is behind the rise in the price of the (dollar to the rial), and even if they did, they could not name anyone,” the economist told Khabar Fori state-run website yesterday.
“This is a complex political issue,” Raghfar, who is a member of Tehran’s Al-Zahra University faculty, added.
According to Bonbast website, the dollar is currently trading at more than 20,000 tomans.
He also criticized the parliament for insisting on banning social media platforms instead of caring about the people’s economic woes.
“Despite all the rhetoric by the parliament about bettering people’s livelihood, we see that they only care about cyberspace issues rather than people’s lives. This shows that they evaluate the fastest way to access their needed funds is by taking from people’s wallets and weakening the national currency.”
Raghfar said that this would wreak havoc on Iran’s economy for years to come.
“This will result in higher prices for goods that the government has the largest demand for and will lead to a larger budget deficit next year,” the regime affiliated economist said.
Taxes from the rich, solution to the current crisis
The economist told Khabar Fori website that one of the ways out of the current economic deadlock was to collect taxes from the rich.
“These people can be easily recognized through their transactions with the Central Bank.”
“In the months of March and April 2020, there was a 500,000 million toman (around $24 million) income in the stock market, which is equal to the national budget for this year,” Hossein Raghfar said.
The regime would never collect taxes from Iran’s upper classes, who are mostly regime elites that evade taxes all together.
Government supports large commercial corporations and not the people
Raghfar told state-run media that the regime and parliament had misled people into entering the stock market in the past two months.
“This has created an unusual increase in the stock market; However, no tax is levied on this wealth.”
“Unfortunately, the government’s policies and general economy is not supportive of the people but rather supports large corporations,” he said.
These “large corporations” are all affiliated with the regime.
The professor said that the consequences of these policies were “dreadful” for Iran and would lead to protests.
“The middle class and the impoverished are getting crushed under the weight of rising prices, and the government must accept responsibility for their future reactions,” he said.
“We are already seeing various forms of protest in low-income groups, including a rise in suicides, violence, addiction, and the brain drain.”
Many Iranian officials have warned the regime that if they do not solve the people’s economic woes, large “violent” protests will erupt. But instead of solving these problems, the regime has resorted to threats by handing out death sentences and heavy prison terms to protesters. Of course, this will not work. The regime has brutally crushed all anti-government protests in the past 41 years. However new protests take shape almost every year, each one more extreme than before.