- Published: Thursday, 07 May 2020
The Iranian parliament has passed a bill to change the national currency from Rials to Tomans, which would remove four zeros from the national currency, as part of its recent economic reforms in order to make the economy look more stable.
But appearance is all that this plan has in its favor. This ill-advised action, particularly when the economy is already hampered by the coronavirus outbreak, will increase inflation, which has already seen the price of goods rise 3,600% over the past four decades, and put additional pressures on the Iranian people. Not least of all because the regime is full of institutionalized corruption and the waste of money on terrorism, suppression, and lining the pockets of the mullahs and their cronies, which is why the national currency decreased in value against the dollar, sometimes as much as 200,000 times.
The Iranian Resistance wrote: “In other words, the Iranian currency has no value, but the mullahs’ regime tries in vain to cover up this absolute economic failure by removing four zeros from the national currency. The regime tries to cover up the increasing inflation and decrease in people’s purchasing power to somehow control the restive Iranian society.”
This political move, which is not recommended by economic experts who referred to it as “erasing the problem instead of solving it”, makes it clear that the regime is in an absolute economic deadlock, with Maryam Rajavi, the president-elect of the National Council of Resistance of Iran (NCRI), saying that this is essentially official recognition of the economy’s bankruptcy.
The only way that this could possibly have been the right move is if it were accompanied by:
- anti-inflation policies
- austerity measures
- financial regularities of the government
- attempts to get rid of long-lasting budget deficits
But the regime will not do any of this – cannot do any of this without a massive reform of its economy - so at best this is a plaster over a gaping wound. Even the state-run media have admitted this.
The Iranian Resistance wrote: “The regime’s maneuver of deleting zeros from the national currency, amid the coronavirus outbreak and the Iranian society’s poor economic situation, was meant only to control, or rather postpone, an upcoming nationwide uprising by the army of hungry and unemployed people; but this wouldn’t work… The truth is that the regime’s officials are not able to wait any longer, and this regime is rapidly reaching its end.”
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