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NCRI Staff<\/p>\n
NCRI –\u00a0The U.S. dollar\u2019s rise against the Iranian rial has led to serious concerns among different social classes, the middle and low-income ones in particular, says an Iranian regime\u2019s economic expert while pointing to the destructive effects of U.S. dollar appreciation on the country\u2019s economy.<\/p>\n
State-run Fararoo websites on February 14, 2018, quotes Hossein Raghfar as saying \u201cthe sharp rise in currency exchange rates against Iran\u2019s rial will have shocking consequences for the society. Unfortunately, no one is paying attention to the repercussions of dollar\u2019s rise. Such situation in many countries has led to something referred to as \u2018bread uprising\u2019.\u201d<\/p>\n
Regarding the consequences of dollar\u2019s rise against the rial, the regime\u2019s expert says \u201cthis will have devastating effects, particularly on low-income population. That\u2019s because many of them live in a too economically difficult and fragile situation. Any further pressure could lower the economic tolerance threshold for many families, even among the middle class.\u201d<\/p>\n
According to Raghfar \u201cpeople hold the entire regime, including such policy-making bodies like the parliament, responsible for the current situation. And they\u2019re right.\u201d<\/p>\n
\u201cIn a country where more than 90 percent of foreign currency is distributed and controlled by the government, any kind of disruption in supply could have harmful effects on the country\u2019s economy\u201d, says Raghfar, adding \u201cwhen people hear about widespread corruption among officials, they more than ever consider themselves as the victims of the policies which by no means address the majority of people\u2019s needs and demands. Thus, occurrence of such incidents like the recent unrests would be more probable, widespread, and predictable.\u201d<\/p>\n
\u201cGovernment officials\u2019 blaming the psychological factors, and not the economic ones, for the dollar appreciation is not correct. It only serves to evade realities and responsibilities. The fact is that what has happened is totally rooted in economics\u2019 supply and demand principle, with the government\u2019s budget deficit being the main reason behind current rise in dollar exchange rate\u201d, says the regime\u2019s economic expert.<\/p>\n
A 6000-toman dollar: predicts an economic analyst<\/p>\n
According to state-run Shahrvand newspaper, the U.S. dollar is on the rise again and its exchange rate against Iran\u2019s rial has edged closer to 50,000. This is while the unharnessed foreign currency appreciation and market instability has caused many economic activists to come out in criticism.<\/p>\n
\u201cThe U.S. dollar will rise up to 60,000 against Iran\u2019s rial\u201d, says economic analyst Parviz Javid, adding \u201cthe currency spring has been set free and the dollar\u2019s upward movement has just begun.<\/p>\n
\u201cRegime\u2019s Central Bank, on the other hand, has not yet given any clear explanation in this regard and has not been able to control the situation, either. The Central Bank is currently empty-handed and is incapable of managing the market by currency injection. The fact is that the big entity is not familiar with any other strategy, either.\u201d<\/p>\n
The Central Bank\u2019s poor performance<\/strong><\/em><\/p>\n Meanwhile, regime\u2019s banking expert \u2018Ahamd Hatami-Yazd\u2019 points to speculation and fake demands as the reasons behind current U.S. dollar appreciation, saying \u201cnot only currency brokers, but many people as well rush to the currency market to invest on dollar when they feel the least amount of tension in the market.\u201d<\/p>\n \u201cSuch demand for foreign currency is not for buying goods or traveling abroad, but it\u2019s merely aimed at making a profitable investment, which by itself could disrupt the market.\u201d The banking expert then points out that the U.S. dollar will even go higher against Iran\u2019s rial, adding \u201cthe Central Bank has put on a significantly poor performance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" NCRI Staff NCRI – The U.S. dollar’s rise against the Iranian rial has led to serious concerns among different social classes, the middle and low-income ones in particular, says an Iranian […]<\/p>\n","protected":false},"author":10,"featured_media":50723,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":["post-24355","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-save"],"yoast_head":"\n