Is Iran Going Bankrupt?

People walk through the old main bazaar in Tehran on July 23, 2018.
People walk through the old main bazaar in Tehran on July 23, 2018.

Hossein Raqfar, an economy expert in Iran, has acknowledged the drastic financial situation facing the regime. Calculations are showing difficult periods ahead even despite what seems, at surface at least, a rebounding currency following the Iranian currency – the rial – plunging to 190,000 against the US dollar.

While the dollar is claimed to sell at around 105,000 rials as we speak, experts are saying even if the rates rise to the regime’s official 42,000 rial the country would be facing deep and widespread recession.

Numerous production units will close down, leading to a significant surge in unemployment. Such developments raise concerns of more people pouring into the streets and a repeat of the Dec 2017 / Jan 2018 uprising.

Such undeniable realities on the ground in Iran leave the regime no choice but to engineer an artificial currency gain, aiming to prevent various imbalances and instabilities, economically, socially and even politically.

Saving face

The Iranian regime is the main element behind all of this country’s economic woes, including the currency crisis. There are a variety of political and social reservations taken into consideration, in line with the old saying of “Ask much to get little.”

The Iranian regime and its array of apologists/lobbyists abroad claim prices in Iran are skyrocketing due to foreign pressures and sanctions. With the currency rates rising artificially, the same voices claim these numbers are dropping due to their management.

These political and psychological schemes are targeting public opinion and seeking to calm a highly restive and potentially uprising society. A staunch reminder is the fact that the rial is hovering at rates three times that of ten months ago. Considering the various aspects in play effecting Iran’s currency rates, the economy is on path to a complete bankruptcy.

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See Also:

(1) Iranian general kills himself accidentally

(2) ANALYSIS: The disaster of drought and water shortage crisis in Iran

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