![\"Economy\"](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2020\/08\/Economy-1024x576.jpg\" "\\"Economy\\"")
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The Iranian regime\u2019s wrong economic policies<\/a> and institu<\/a><\/span>tionalized corruption has resulted in rising inflation rate and high prices<\/span>. Yet, regime officials, particularly\u00a0<\/span>regime\u2019s\u00a0<\/span>President Hassan Rouhani and his government<\/span>,<\/span>\u00a0try to cover<\/span>\u00a0<\/span>up this reality and deceive people.\u00a0<\/span>\u00a0<\/span><\/p>\n Akbar Turkan,<\/a> former advisor of Rouhani, in an interview\u00a0<\/span>with the state-run Arman daily<\/span>\u00a0<\/span>on August<\/span>\u00a03<\/span>\u00a0identified \u201cwidespread high prices\u201d as the most important economic challenge for poor people<\/span>. He also called\u00a0<\/span>out\u00a0<\/span>the country\u2019s budget deficit\u00a0<\/span>and government\u2019s subsequent borrowing in different forms to cover this budget deficit. This is while government is\u00a0<\/span>the main monetary policy maker of a country<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n In this regard, the state-run Jahan-e\u00a0<\/span>Sanat<\/span>\u00a0daily in an article published in August 1, entitled as \u201cWho to blame for rising inflation rate?\u201d wrote:\u00a0<\/span>\u201c<\/span>The government’s non-compliance with monetary policy has made it impossible for the economy to get out of the damaged cycle of creating liquidity and inflation. But since only one aspect of the devaluation of the national currency goes back to the policies of the central bank, if the policymaker is short of money and does not increase his oversight of the money creation process in the banks, it becomes a factor in increasing liquidity and inflation.<\/span>\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n In another article on August 2, Jahan-e\u00a0<\/span>Sanat<\/span>\u00a0wrote:\u00a0<\/span>\u201c<\/span>The central bank speaks of an ongoing rising trend of liquidity and confirms the strong long-term correlation between money growth and inflation. Liquidity has risen and paved the way for rising inflation. The severe budget deficit, disruption of non-oil export trends and currency fluctuations after that have kept the money creation engine running<\/span>,<\/span>\u00a0and inflation expectations have undergone fundamental changes. We are witnessing the daily creation of 2,000 billion tomans of liquidity. We are facing an increase in money circulation between different economic markets that are changing inflation expectations in their favor.<\/span>\u201d<\/span>\u00a0<\/span><\/p>\n Recently\u00a0<\/span>Abdolnaser<\/span>\u00a0<\/span>Hemati<\/span>, the Iranian regime\u2019s Central Bank President, acknowledged that rising prices of goods and the inflation rate is due to the regime\u2019s wrong economic policies.<\/span>\u00a0<\/span>\u201cPurchasing part of the currency\u2019s resources of the National Development Fund to cover the budget deficit by the Central Bank (as mandated in this year\u2019s budget) in the case of sanctions is to cover the budget deficit from the monetary base. In the short term, this would be like borrowing from the Central Bank<\/span>,<\/span>\u201d<\/span>\u00a0he wrote in his personal Instagram account.\u00a0<\/span>\u00a0<\/span><\/p>\n #Iran<\/a> Regime\u2019s Central Bank Chief Admits to Mullahs\u2019 Absolute Economic Deadlock https:\/\/t.co\/K9wzwJ6UYJ<\/a><\/p>\n \u2014 NCRI-FAC (@iran_policy) August 3, 2020<\/a><\/p><\/blockquote>\n With the devaluation of the national currency as the main indicator of the country’s economic bankruptcy, we are subsequently witnessing an unbridled rise in the prices of basic goods and sending more people below the poverty line.<\/span>\u00a0<\/span>The I<\/span>nternational\u00a0<\/span>M<\/span>onetary\u00a0<\/span>F<\/span>und (IMF)<\/span>\u00a0<\/span>previously said that\u00a0<\/span>inflation in Iran is the highest in the world after Venezuela and Sudan<\/span>.\u00a0\u00a0<\/span>in addition,<\/span>\u00a0the<\/span>\u00a0<\/span>IMF<\/span><\/a>\u00a0had predicted that\u00a0<\/span>Iran\u2019s economy is expected to shrink by 9.5% this year<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n The state-run\u00a0<\/span>Arman daily, while referring to the severe impact of\u00a0<\/span>the Iranian regime\u2019s wrong economic policies on people\u2019s lives<\/span>\u00a0such as removal of people\u2019s basic and essential goods wrote:\u00a0<\/span>\u201c<\/span>In addition to the high price of domestic rice, now imported rice has joined the ranks of expensive goods simultaneous with\u00a0<\/span>the\u00a0<\/span>national currency<\/a> devaluation. It can be predicted that rice will be removed from the table of many families and lower classes of society by becoming 85% more expensive. The increase in the price and\u00a0<\/span>inflation of foreign rice occurs while it was one of the basic commodities that was on the list of people when one dollar was sold at the exchange rate of 4200 Tomans.<\/span>\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n Iran regime\u2019s deception in face of economic crisis<\/span><\/b>\u00a0<\/span><\/p>\n Instead of\u00a0<\/span>acting<\/span>\u00a0and help<\/span>ing<\/span>\u00a0the Iranian people that are grappling with poverty, the regime has increased it deception.\u00a0<\/span>For instance, Iran\u2019s Statistics Center which is under Rouhani\u2019s control announced the inflation rate\u00a0<\/span>at<\/span>\u00a026%. Now which one should<\/span>\u00a0people<\/span>\u00a0believe: their empty tables or\u00a0<\/span>these fabricated statistics?\u00a0 Rouhani had previously claimed: \u201c<\/span>Controlling prices and providing essential items for people’s lives is the main priority of the government’s economic programs, and fortunately the people have witnessed that we have had the least difficulty in providing the items they need.<\/span>\u201d<\/span>\u00a0<\/span><\/p>\n He bogusly claimed this while reports from Iran indicate how people are forced to live\u00a0<\/span>in graves or on rooftops.\u00a0<\/span>If<\/span>\u00a0the economy cycle is in such a good situation that Rouhani claims, then why did Rouhani and the regime\u2019s Supreme Leader Ali Khamenei force people back to work amid\u00a0<\/span>the\u00a0<\/span>COVID-19 outbreak?\u00a0<\/span>\u00a0<\/span><\/p>\n Meanwhile, P<\/span>rofessor Steve Hanke of Johns Hopkins University in the United States said the Iranian regime\u2019s official 26 percent inflation rate is a lie and Iran\u2019s accurate inflation rate stands at 98 percent.<\/span>\u00a0<\/span><\/p>\n The #StatisticalCenterOfIran<\/a> is putting out BOGUS numbers. In its latest report, it claims #Iran<\/a>‘s #Inflation<\/a> is 26.4%\/yr. NOT TRUE. By utilizing high-frequency data & SOUND science, I measure Iran\u2019s #Inflation<\/a> @ a stunning 98%\/yr! Iran\u2019s corrupt govt produces corrupt \u201cfacts\u201d. pic.twitter.com\/icPWQ3Liaw<\/a><\/p>\n \u2014 Prof. Steve Hanke (@steve_hanke) July 31, 2020<\/a><\/p><\/blockquote>\n \u00a0In this regard, Isa Jafari, the regime\u2019s Member of Parliament, terrified of the social outcome for the regime<\/span>,<\/span>\u00a0<\/span>on\u00a0<\/span>June 23 said: \u201c<\/span>Mr. President, are you aware of the unbridled prices of goods? Can you live with\u00a0<\/span>1.2\u00a0<\/span>million tomans? Mr. President, how much has your government fought corruption? Do you know that some of your officials have been reluctant to pay rent for corporate homes for several years? When will these people understand the unbridled cost of housing?<\/span>\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n Sanctions or the regime: which one to blame for economic hardship<\/span><\/b>?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n Jafari<\/span>\u2019s<\/span>\u00a0remarks, the contradiction between Rouhani\u2019s bogus claims and forcing people back to work<\/span>,<\/span>\u00a0and the regime\u2019s wrong economic policies,\u00a0<\/span>which are\u00a0<\/span>even highlighted in the state media, re<\/span>ject the regime\u2019s campaign of\u00a0<\/span>blaming\u00a0<\/span>international sanctions as the real source of Iran\u2019s economic problem.\u00a0<\/span>\u00a0<\/span><\/p>\n In addition, while the Iranian people are grappling with poverty, financial institutions under Khamenei\u2019s supervision have\u00a0<\/span>been profiting\u00a0<\/span>from\u00a0<\/span>the situation. In 2019,\u00a0<\/span>w<\/span>hile many governmental and non-governmental organizations were involved in production<\/span>\u00a0and<\/span>\u00a0went bankrupt<\/span>, Bonyad\u00a0<\/span>Mostazafan<\/span>, which is directly controlled by Khamenei<\/span>,<\/span>\u00a0had an astronomical income.\u00a0<\/span>\u00a0<\/span><\/p>\n Parviz<\/span>\u00a0Fattah, head of this foundation<\/span>,<\/span>\u00a0told the state-run ILNA news agency on July 27: \u201c<\/span>In the past year, we had a 34% growth compared to\u00a0<\/span>2018<\/span>, and the total income of the foundation reached 36,000 billion tomans.<\/span>\u201d\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n In\u00a0<\/span>addition,<\/span>\u00a0the regime, through these institutions, has never stopped funding terrorism.\u00a0<\/span>In a TV interview (<\/span>Ofogh<\/span>\u00a0-Horizon- Network) in early April 2020 Fattah confessed to paying\u00a0<\/span>Revolutionary Guards (IRGC)<\/span><\/a>\u00a0mercenaries in Syria, saying: \u201cI was at the IRGC Cooperative Foundation. Haj\u202fQassem\u202f[<\/span>IRGC-QF<\/span><\/a>\u202fcommander\u202f<\/span>Qassem<\/span><\/a>\u202fSoleimani] came and told me he did not have money to pay the salaries of\u00a0<\/span>the\u202f<\/span>Fatemiyoun<\/span>. He said that these are our Afghan brothers, and he asked for help from people like us.<\/span>\u201d<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/b>The outcome\u00a0\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n The regime\u2019s wrong economic policies along with its oppression and now the coronavirus crisis ha<\/span>ve<\/span>\u00a0<\/span>increased the Iranian society\u2019s restiveness.\u00a0 In this regard, the state-run Ebtekar daily in July 31 wrote:\u00a0<\/span>\u201c<\/span>The current situation cannot be continued. We have been through the warning point for a long time. If the starving people’s movement is fully established, there will be nothing left. This society has reached its boiling point many times, but it has stalled for whatever reason. November [nationwide Iran protests] was just the partial rising of the starving people. If there is no positive and serious change in the current situation, sooner or later, a fire will\u00a0<\/span>ignite<\/span>;<\/span>\u00a0a fire which<\/span>\u00a0will burn everything.<\/span>\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" The Iranian regime’s wrong economic policies and institutionalized corruption has resulted in rising inflation rate and high prices. Yet, regime officials, particularly regime’s President Hassan Rouhani and his government, try to cover up this […]<\/p>\n","protected":false},"author":17,"featured_media":223454,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,10],"tags":[129,130],"class_list":{"0":"post-223453","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"category-economy","9":"tag-iran","10":"tag-iran-protests"},"yoast_head":"\n\n
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