{"id":258398,"date":"2022-04-30T17:42:10","date_gmt":"2022-04-30T16:42:10","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=258398"},"modified":"2023-02-01T23:43:22","modified_gmt":"2023-02-01T22:43:22","slug":"iran-raisis-government-in-real-quandary-to-remove-preferential-currency-rate","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-raisis-government-in-real-quandary-to-remove-preferential-currency-rate\/","title":{"rendered":"Iran: Raisi\u2019s Government in Real Quandary To Remove Preferential Currency Rate"},"content":{"rendered":"<p style=\"text-align: justify\"><img decoding=\"async\" title=\"iran-bankrupt-dollar-toman-notes-min\" class=\"alignnone size-full wp-image-248844\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min.jpg\" alt=\"iran-bankrupt-dollar-toman-notes-min\" width=\"1000\" height=\"608\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min.jpg 1000w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min-300x182.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min-768x467.jpg 768w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min-150x91.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/iran-bankrupt-dollar-toman-notes-min-696x423.jpg 696w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify\">Since announcing it is going to remove the official exchange rate, Ebrahim Raisi\u2019s government has been toing and froing to implement this decision or not. The skyrocketing prices indicate that the \u201changing judge\u201d and his government have indeed eliminated the preferential rate but are playing hide and seek to prevent public anger.<\/p>\n<p style=\"text-align: justify\">A few days after the hasty approval of removing the official exchange rate by the regime\u2019s parliament, Bahadori Jahromi, the spokesperson of Raisi\u2019s government, announced on March 16\u00a0 that the \u201cpreferential currency is not yet eliminated,\u201d as reported by the<a href=\"https:\/\/tejaratnews.com\/%D8%A7%D8%B1%D8%B2-%D8%AA%D8%B1%D8%AC%DB%8C%D8%AD%DB%8C-%D9%87%D9%86%D9%88%D8%B2-%D8%AD%D8%B0%D9%81-%D9%86%D8%B4%D8%AF%D9%87-%D8%A7%D8%B3%D8%AA%D8%9F\"> state-run Tejarat News.<\/a><\/p>\n<p style=\"text-align: justify\">Raisi\u2019s flip-flop about removing or maintaining the preferential rate was mocked by state-run media and the regime\u2019s economists.<\/p>\n<p style=\"text-align: justify\">\u201cBy removing the preferential rate, our society will lose the ability to provide medicine. Raisi told economists that he would not eliminate the official exchange rate of 4200 tomans for the dollar. Yet, he reversed himself a day after and sent a bill to eliminate the preferential rate,\u201d Hossain Raghfar, an economist, was quoted by the <a href=\"http:\/\/www.didbaniran.ir\/%D8%A8%D8%AE%D8%B4-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%DB%8C-4\/130947-%D8%AD%D8%B3%DB%8C%D9%86-%D8%B1%D8%A7%D8%BA%D9%81%D8%B1-%D8%A8%D8%A7-%D8%AD%D8%B0%D9%81-%D8%A7%D8%B1%D8%B2-%D8%AA%D8%B1%D8%AC%DB%8C%D8%AD%DB%8C-%D8%AC%D8%A7%D9%85%D8%B9%D9%87-%D8%AA%D9%88%D8%A7%D9%86-%D8%AA%D9%87%DB%8C%D9%87-%D8%AF%D8%A7%D8%B1%D9%88-%D8%B1%D8%A7-%D8%A7%D8%B2-%D8%AF%D8%B3%D8%AA-%D8%AE%D9%88%D8%A7%D9%87%D8%AF-%D8%AF%D8%A7%D8%AF-%D9%87%D8%AF%D9%81-%D8%A7%D8%B2-%D8%AD%D8%B0%D9%81-%D8%A7%D8%B1%D8%B2-%D8%AA%D8%B1%D8%AC%DB%8C%D8%AD%DB%8C-%D8%A7%DB%8C%D8%AC%D8%A7%D8%AF-%D8%A8%D8%AD%D8%B1%D8%A7%D9%86-%D8%AF%D8%B1-%DA%A9%D8%B4%D9%88%D8%B1-%D8%A7%D8%B3%D8%AA-%D8%B1%D8%A6%DB%8C%D8%B3%DB%8C-%D8%AF%D8%B1-%D8%AF%DB%8C%D8%AF%D8%A7%D8%B1-%D8%A8%D8%A7-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D8%AF%D8%A7%D9%86%D8%A7%D9%86-%DA%AF%D9%81%D8%AA-%D8%A7%D8%B1%D8%B2-%D8%AA%D9%88%D9%85%D8%A7%D9%86%DB%8C-%D8%B1%D8%A7-%D8%AD%D8%B0%D9%81-%D9%86%D9%85%DB%8C-%DA%A9%D9%86%DB%8C%D9%85-%D8%A7%D9%85%D8%A7-%D8%B5%D8%A8%D8%AD-%D8%A8%D8%B9%D8%AF-%D8%A7%D8%B2-%D8%B1%D9%88%D8%B2-%D8%AF%DB%8C%D8%AF%D8%A7%D8%B1-%D9%84%D8%A7%DB%8C%D8%AD%D9%87-%D8%AD%D8%B0%D9%81-%D8%A7%D8%B1%D8%B2-%D8%AA%D8%B1%D8%AC%DB%8C%D8%AD%DB%8C-%D8%B1%D8%A7-%D8%A8%D9%87-%D9%85%D8%AC%D9%84%D8%B3-%D9%81%D8%B1%D8%B3%D8%AA%D8%A7%D8%AF\">state-run Did-e ban Iran on April 28.<\/a><\/p>\n<p style=\"text-align: justify\">\u201cThe prices increased daily before eliminating the official exchange rate. Now, thanks to the government which brags about helping the poor [and removing the preferential rate], prices skyrocket every hour,\u201d Raghfar added.<\/p>\n<p style=\"text-align: justify\">He also acknowledged that Raisi is punching above his weight by talking about economics and mocked his bogus claims, such as eradicating poverty in two weeks.<\/p>\n<p style=\"text-align: justify\">\u201cEven a teenager knows that one cannot eradicate poverty in two weeks. Raisi\u2019s behavior cannot be excused. How can the president of a country allows himself to speak nonsense when people speak about their problems?\u201d Raghfar asked.<\/p>\n<p style=\"text-align: justify\">Mohsen Zangeneh, a member of the Parliamentary Program and Budget Commission, also acknowledged the adverse effects of removing the preferential rate.<\/p>\n<p style=\"text-align: justify\">\u201cWe should also consider the inflation expectations. The ongoing announcements by Raisi and his ministers on removing or maintaining the preferential rate have negative effects on inflation and accelerate its increase,\u201d he said on April 23, as quoted by the <a target=\"_blank\" href=\"https:\/\/www.mehrnews.com\/news\/5471564\" rel=\"noopener\">state-run Mehr<\/a> News Agency, an outlet linked to the regime\u2019s Ministry of Intelligence.<\/p>\n<p style=\"text-align: justify\">\u201cSometimes the government should decisively implement some policies. Delaying the implementation of decisions may disturb the community and the market and have destructive effects,\u201d he warned about people\u2019s backlash.<\/p>\n<p style=\"text-align: justify\">First introduced in 2018, the so-called preferential rate became the country\u2019s official exchange rate to control the soaring prices of consumer goods.<\/p>\n<p style=\"text-align: justify\">The skyrocketing prices led to the first major Iran <a target=\"_blank\" href=\"https:\/\/www.ncrius.org\/topics\/january-2018-uprising.html\" rel=\"noopener\">protests in 2018<\/a>, which rattled the regime\u2019s foundations. These protests happened shortly after the so-called \u201cmoderate\u201d government of Hassan Rouhani fooled the world community to deliver Tehan a windfall of cash, once again confirming that sanctions do not primarily cause Iran\u2019s economic crunch.<\/p>\n<p style=\"text-align: justify\">Hassan Rouhani and his government opted to control the fluctuating currency rate. Eshagh Jahangiri, Rouhani\u2019s vice president, first announced the existence of 42,000 rials for a dollar exchange rate. Thus, the rate is also known as \u201cJahangiri\u2019s currency.\u201d<\/p>\n<p style=\"text-align: justify\">Lacking enough currency, the Rouhani government started printing banknotes, thus increasing the liquidity while the country\u2019s production rested below 3%. Therefore, inflation and prices started ramping.<\/p>\n<p style=\"text-align: justify\">Besides, the official exchange rate was initially allocated for importing necessities such as medications and food items. Yet, as always, the regime\u2019s insiders were privileged to import these goods, and they sold them sometimes threefold in the market.<\/p>\n<p style=\"text-align: justify\">\u201cCorruption due to this currency is estimated at 5.9 quadrillion rials. It should be noted that the total development budget for 2021-2022 is about 1.4 quadrillion rials,\u201d he added, according to the state-run Keyhan daily on November 10., 2021.<\/p>\n<p style=\"text-align: justify\">Raisi\u2019s primary goal of removing the official exchange rate is to direct Tehran\u2019s limited resources on regional war-mongering and terrorism and keep the regime\u2019s oppressive apparatus on foot.\u00a0But the reason that has delayed the regime\u2019s decision to implement the new monetary policy is the social impact and fear of people\u2019s protests.<\/p>\n<p style=\"text-align: justify\">Protests stretch across Iran by people from all walks of life, portraying the society\u2019s volatility.\u00a0 People blame the regime and its disastrous policies for the bleak economic crisis.\u00a0 They cannot take more skyrocketing prices, which sends a chill to the regime\u2019s bones.<\/p>\n<p style=\"text-align: justify\">\u201cWe should be sensitive about the rising inflation as it makes life harder for people. Inflation causes absolute poverty, breaks the back of fathers, and brings tears to the ashamed mothers\u2019 eyes as they cannot feed their children,\u201d the state-run <a href=\"https:\/\/www.khabaronline.ir\/news\/1626633\/%D8%A7%D8%B4%D8%AA%D8%A8%D8%A7%D9%87-%D8%A8%D8%B2%D8%B1%DA%AF-%D8%AF%D9%88%D9%84%D8%AA-%D8%AF%D8%B1-%D8%AD%D8%B0%D9%81-%D8%A7%D8%B1%D8%B2-%DB%B4%DB%B2%DB%B0%DB%B0-%D8%AA%D9%88%D9%85%D8%A7%D9%86%DB%8C-%D8%AA%DA%A9%D8%A7%D9%86%D9%87-%D9%87%D8%A7%DB%8C-%D8%B4%D8%AF%DB%8C%D8%AF-%D8%AA%D9%88%D8%B1%D9%85%DB%8C\">Etemad daily wrote<\/a> on April 30.<\/p>\n<p style=\"text-align: justify\">And the regime fears that people\u2019s sorrow would add to their anger toward the regime would pour them into the streets as they did in November 2019, and this time would end the plague that has destroyed the country in the last 43 years.<\/p>\n<p style=\"text-align: justify\">So could Raisi continue kicking the can down the road? Or any delay could trigger more protests?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since announcing it is going to remove the official exchange rate, Ebrahim Raisi&rsquo;s government has been toing and froing to implement this decision or not. The skyrocketing prices indicate that [&#8230;]<\/p>\n","protected":false},"author":22,"featured_media":248844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,511],"tags":[129,229],"class_list":{"0":"post-258398","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"category-ebrahim-raisi","9":"tag-iran","10":"tag-irans-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Iran: Raisi\u2019s Government in Real Quandary To Remove Preferential Currency Rate - NCRI<\/title>\n<meta name=\"description\" content=\"Since announcing it is going to remove the official exchange rate, Ebrahim Raisi\u2019s government has been toing and froing to implement this decision or not.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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