![\"\u201cSuper](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/sites\/2\/2018\/11\/Super-Inflation-in-Iran-as-New-Sanctions-Hit.jpg\" "\\"Super-Inflation-in-Iran-as-New-Sanctions-Hit\\"")
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By\u00a0By Amir Taghati<\/p>\n
On Monday, the US sanctions hit Iran\u2019s energy and bank sector. Meanwhile, officials in Iran dismiss concerns about the impact of the sanctions on the economy, and claim that nothing serious has happened.<\/p>\n
Tasnim state-run News Agency cited the Managing Director of the Iran Export Guaranty Fund as saying, \u201cgiven the foreign exchange reserves and the country\u2019s economic capacities, even if we do not have three years of oil exports, the country will be managed.\u201d<\/p>\n
At a meeting broadcast live on state television, Iranian President Rouhani told economists, \u201cAmerica wanted to cut to zero Iran\u2019s oil sales \u2026 but we will continue to sell our oil \u2026 to break sanctions.\u201d He added \u201cThis is an economic war against Iran but \u2026 America should learn that it cannot use the language of force against Iran \u2026 We are prepared to resist any pressure.\u201d Rouhani also said, \u201cToday the enemy (the United States) is targeting our economy \u2026 the main target of sanctions is our people.\u201d<\/p>\n
Some Western media, as well as critics of America\u2019s tough policy on Iran are concerned by remarks such as these, but Iranians know who to blame for their misfortune. Their economy has been dire for a long time.<\/p>\n
In fact, state-media reports daily about factories and industries closing down due to bankruptcy, leaving more people unemployed.<\/p>\n
Economic experts call the high inflation rate \u201csuper inflation\u201d. It has all but eliminated the Iranian middle class, and resulted in 80% of the population living in poverty. According to economist Professor Steve Hanke, Iran\u2019s inflation rate is 265%.<\/p>\n
According to state run ILNA News Agency, only about 14 million people in Iran have permanent jobs and a stable income. \u201cThis is while only 23 million people are employed in Iran and 9 million of them do not have a permanent, stable job,\u201d the new agency wrote on November 4th. Iran officials lack accountability for the economy, ILNA wrote, \u201cThe energy of politicians in the sectors of industry, services and agriculture is used exclusively in political and factional infighting.\u201d The news agency added, \u201cFactions are merely thinking of consolidating power rather than boosting employment.\u201d<\/p>\n
An NGO that tracks global corruption, Transparency International, writes Iran is one of the most corrupt countries in the world. It is ranked 130 out of 180 world countries on the global Corruption Perceptions Index (CPI) 2017, published by Transparency International on February 2017.<\/p>\n
In an interview with ILNA, Hassan Sadeghi, the head of a trade union cited 498 manufacturers in Iran that were in crisis adding that the \u201cfactories needed urgent aid and support.\u201d He said, \u201cThe rest of the factories are also concerned about future crises.\u201d Sadeghi said that the country\u2019s factories were running on old technology and that they were behind some 40 years. \u201cFor example right now, Saudi Arabia\u2019s poly acrylic production line technology is 40 years ahead of ours, so it\u2019s natural that our obsolete technology adds to the crisis,\u201d he explained.<\/p>\n
\u201cOfficials are feigning sleep when it comes to the problems of factories because this is the cheapest option for them,\u201d Azizeh Sharifi said regarding the closure of tile and ceramic factories and the crises that other factories face.<\/p>\n
As well, the prices of dairy products in Iran has also made headlines in Iran recently. The head of the Board of Directors of the Association of Dairy Farmers says that the high price of dairy products is due to the high price of raw materials. \u201cThe cost of packaging and materials needed by factories has increased fourfold. As our expenses go up 2 to 3 times every day, so does the price of other products,\u201d he said in an interview with ILNA.<\/p>\n
Many factories and manufacturers have not paid their workers for months, despite daily protests and strikes by laborers in various sectors.<\/p>\n
In short, Iran\u2019s already shaky economy that is the result of corruption and mismanagement is likely to crumble under the new US sanctions.<\/p>\n","protected":false},"excerpt":{"rendered":"
By By Amir Taghati On Monday, the US sanctions hit Iran’s energy and bank sector. Meanwhile, officials in Iran dismiss concerns about the impact of the sanctions on the economy, and […]<\/p>\n","protected":false},"author":15,"featured_media":52275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":{"0":"post-25479","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-save"},"yoast_head":"\n