{"id":254558,"date":"2022-02-03T09:32:29","date_gmt":"2022-02-03T14:32:29","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=254558"},"modified":"2023-02-03T12:36:40","modified_gmt":"2023-02-03T11:36:40","slug":"iran-raisi-adamant-on-removing-official-exchange-rate-mps-warn-of-consequences","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-raisi-adamant-on-removing-official-exchange-rate-mps-warn-of-consequences\/","title":{"rendered":"Iran: Raisi Adamant on Removing Official Exchange Rate, MPs Warn of Consequences"},"content":{"rendered":"<p style=\"text-align: justify\"><img decoding=\"async\" title=\"iran-parliament-crises\" class=\"alignnone wp-image-254560\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/01\/iran-parliament-crises.jpg\" alt=\"iran-parliament-crises\" width=\"1000\" height=\"509\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/01\/iran-parliament-crises.jpg 752w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/01\/iran-parliament-crises-300x153.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/01\/iran-parliament-crises-150x76.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/01\/iran-parliament-crises-696x354.jpg 696w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify\">It has been two weeks since the Iranian regime\u2019s president Ebrahim Raisi introduced his government\u2019s budget plan. While the regime\u2019s parliament <a href=\"https:\/\/english.mojahedin.org\/article\/iran-what-are-the-consequences-of-parliaments-hasty-approval-raisis-budget\/\">hastily approved<\/a> the budget\u2019s generalities, MPs continue warning Raisi about the consequences of removing the official exchange rate.<\/p>\n<p style=\"text-align: justify\">Despite numerous warnings by regime officials, economists, and state media about the \u201cdevastating\u201d consequences of removing the official exchange rate, Raisi, and his government are digging holes to proceed with their plan.<\/p>\n<p style=\"text-align: justify\">\u201cYesterday, the spokesman of the Budget Consolidation Commission said that eliminating the official exchange rate has serious consequences for the people,\u201d the state-run Sharq daily wrote on January 18.<\/p>\n<p style=\"text-align: justify\">The MPs\u2019 shedding crocodile tears for people reflect their anxiety about a popular <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/iran-protests\/iran-regimes-deputy-interior-minister-warns-of-uprisings\/\" rel=\"noopener\">backlash<\/a>.<\/p>\n<p style=\"text-align: justify\">According to Sharq, the parliament\u2019s Security Commission Chair Mojtaba Zoulnori acknowledged that Iran\u2019s \u201csociety cannot endure the economic consequences of eliminating the official exchange rate. The skyrocketing prices have broken people\u2019s back.\u201d \u201cThe current situation is not suitable for removing the <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/economic-consequences-of-eliminating-the-official-exchange-rate-in-iran\/\" rel=\"noopener\">official exchange<\/a> rate,\u201d Kazem Delkhosh, member of the Budget Consolidation Commission told the state-run Khabar Online website on January 18.<\/p>\n<p style=\"text-align: justify\">\u201cThe government&#8217;s plans should not impose more pressure on the People. Those decisions may solve the government&#8217;s problem, but seriously damage people&#8217;s livelihood,\u201d Delkhosh said. \u201cRemoving the official exchange rate will increase the prices of at least 25 consumer goods, affecting the prices of 600 to 700 items, exerting crushing financial hardship on the people,\u201d he was quoted as saying.<\/p>\n<p style=\"text-align: justify\">Sharq daily also quoted a letter by former MP Ahmad Tavakoli to Raisi and to other heads of branches about the consequences of removing the official exchange rate. \u201cIgnoring expected inflation causes severe damage. The most bitter result of this crisis, in addition to inflation, is a terrible recession that multiplies people&#8217;s financial crunch,\u201d Tavakoli cautioned.<\/p>\n<p style=\"text-align: justify\">Tavakoli had also told Sharq daily that \u201cinflation has crushed people and it would be worse [if Raisi removes the official exchange rate]. People are losing their patience.\u201d<\/p>\n<p style=\"text-align: justify\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify\">The <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/editorial\/editorial-iran-removing-official-exchange-rate-is-playing-with-fire\/\" rel=\"noopener\">official exchange<\/a> rate of 42,000 rials for a dollar was introduced in 2018 by the Hassan Rouhani government, supposedly to control prices of basic consumer goods. Since the currency based on the official exchange rate was allocated to the regime\u2019s front companies, using it did not effectively reduce the prices of basic goods. It rather allowed regime officials and their relatives to embezzle billions of dollars and sell the basic goods at a much higher price in the open market.<\/p>\n<p style=\"text-align: justify\">Since the regime did not have enough resources, it started printing banknotes, therefore increasing liquidity. As Iran\u2019s production rate is very low due to the regime\u2019s corruption, ineptitude, and mismanagement, the liquidity grew rapidly increased inflation, causing skyrocketing prices.<\/p>\n<p style=\"text-align: justify\">\u00a0During the last year of his term, Rouhani intended to eliminate the official exchange rate, estimating it would earn them at least 600 trillion rials. Now, if Raisi suspends or removes the official exchange rate, his government would earn around $2 billion, with the current exchange at a free market rate of 280,000 rials for $1.<\/p>\n<p style=\"text-align: justify\">Since the regime desperately needs cash to support its terrorist proxy groups, even $2 billion is essential for it. Removing the official exchange rate will heighten public rage and increase the possibility of another major uprising, making the blood of regime officials run cold.<\/p>\n<p style=\"text-align: justify\"><strong>To know more about the origins of the official exchange rate and its consequences, read our reports: <\/strong><\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/economic-consequences-of-eliminating-the-official-exchange-rate-in-iran\/\">Economic Consequences of Eliminating the Official Exchange Rate in Iran<\/a><\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.ncr-iran.org\/en\/editorial\/editorial-iran-removing-official-exchange-rate-is-playing-with-fire\/\">Editorial \u2013 Iran: Removing Official Exchange Rate Is Playing With Fire<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It has been two weeks since the Iranian regime&rsquo;s president Ebrahim Raisi introduced his government&rsquo;s budget plan. While the regime&rsquo;s parliament hastily approved the budget&rsquo;s generalities, MPs continue warning Raisi [&#8230;]<\/p>\n","protected":false},"author":16,"featured_media":254560,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,229],"class_list":{"0":"post-254558","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-irans-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Iran: Raisi Adamant on Removing Official Exchange Rate, MPs Warn of Consequences - NCRI<\/title>\n<meta name=\"description\" content=\"It has been two weeks since the Iranian regime\u2019s president Ebrahim Raisi introduced his government\u2019s budget plan. 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