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Despite Claims of Growth, Iran’s Economy Continues to Deteriorate

This, despite Rouhani’s claim of creating a million jobs each year.

The newspaper writes in an article titled, “Government’s silence in the face of foreign currency appreciation”, that beginning “a month ago, foreign currency appreciation reached its peak level this week, with experts believing that the US Dollar could easily enter the 4000-toman channel unless the government does something about it. Besides, offering travel currency at official rates is going to be stopped as of today, which will in turn lead to increased demand for currencies in the open market. Experts believe that such factor as increased demand, reduced bank interest rates, and government’s inaction while taking advantage of the difference between official and unofficial currency rates to compensate for its budget deficit have caused the value of foreign currencies to increase.”

Vice Chairman of the regime’s Parliament Planning and Budget Committee. Hadi Ghavami, said, “With foreign currency appreciated, government might earn seven to 10 thousand billion tomans.”

At the same time, a Revolutionary Guards’ newspaper revealed that amid clashes between regime’s rival factions, Rouhani’s government plans to remove price tags obligation in a bid to cover the consequences of increased dollar value. However, this is a move that could burden people’s lives with increased prices. The newspaper has quoted Hadi Ghavami as saying that “the 37-billion-thousand-toman budget deficit forecast is the reason behind foreign currency appreciation.”

September 11, 2017, state-run Javan newspaper, quoted the CEO of Food Industries Trade Unions Association as saying that all commodities, except bread and milk, will no longer be subject to pricing scheme.

State-run Poolnews, acknowledged on September 11th, that “our economy is currently caught in inflationary stagnation, a state in which prices keep going up while unemployment rate keeps rising as well. A fact also backed by the country’s official figures.”

While Rouhani and his deputy claim increased foreign investment, Fars news agency, has quoted a member of regime’s chamber of commerce as saying “the conditions are not suitable for foreign investment since many of necessary infrastructures are lacking. It’s being said that there’s a good return on investment in our country and that the country is safe for investors, but these words alone are not going to absorb foreign investors.”

State-run Etemad newspaper, quoted an economist close to Rouhani on September 11, 2017. Hossein Raghfar asked, “do most people in developed, industrial countries lacking rich mineral resources earn their livelihood through border couriering? The question is why such kinds of jobs are becoming more and more commonplace in our country every day?” He continued, by saying, “The main reason should be sought in the country’s economy. The main source of income of country’s entrepreneurs comes from such trading activities like imports, buying and selling properties, or money brokering. Such an economy is not capable of creating jobs for poor population. Likewise, a rent-oriented economy is not capable of creating industrial, productive jobs.”

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