The Iranian government’s poor economic performance and massive corruption have lead to Iran’s currency free fall as the United States first batch of sanctions on Iran’s economy is due to be reimposed. The currency free fall is such that according to the latest reports from Iran, the country’s currency, Rial, is trading at 110,000 for each U.S. dollar. This means that the national currency has lost 120 percent of its value during the past six months alone. Rial’s nosediving will inevitably lead to increased inflation rate and higher prices of goods and commodities in Iran aggravating families’ poverty and suffering.
“Inflation will increase 20 to 50 percent prior to March 2019,” said Vahid Shaghaghi, an economist affiliated to the Iranian regime.
Internal factors such as massive corruption amongst the regime elements are said to be the major drive behind the economic crisis in Iran. “The increase in dollar price brings more revenue for the government. Although the government is not willing to accept this reality,” said former commerce minister Yahiya Al Es’hagh to state media.
The entire economy in Iran is controlled by the corrupt regime and the Revolutionary Guards, while the Iranian people are hostages of this enormously dangerous status quo.
Considering the nosediving value of Iran’s currency, low wages and paychecks failing to increase in line with inflation and skyrocketing prices, the Iranian people are losing their purchasing power and families are suffering severely as the result.
When a country’s currency falls over 50 percent in value, it means the entire population suffers as the money in their bank accounts and paychecks lose their value. The first victims are ordinary people as regime officials and their families are weathering the conditions through their corrupt links.