Rial Iran plunge under the US sanctions, Iranian currency “Rial” on the slide The final fall, Will this one end?

by Bahar Mehr

In Iran you can;t find a one price for dollar, right now 1 dollar equal 120000 Rials!? I remember 45 years ago 1 dollar was equal 700 Rials what happen? I try explain that for you

Along with the explosive rise of the price of the currency and its consequences beyond imagination, the internal conflict in the regime has risen over the root cause of this issue.experts from various gangs of the regime have different sayings about it.

I’ll explain more in the discussion below but now I look at the consequences of this issue.

The fall of the Rial and the dramatic fall in the purchasing power of low-income groups

The price of the dollar in the open market on Monday was 12,800 tomans. The regime, as usual, tried to deal with the crisis by suppressing and arresting “currency sellers.” however, members of the regime’s chamber of commerce say that the price of the currency can not be predicted for the next 10 minutes!!!

The “rebellion of the hungry” is inevitable

The rise in the dollar, the purchasing power of low-income workers and low-income groups in the past few weeks has dropped 72 percent, meanwhile, it’s about a 72 percent decline in the value of the rial versus the dollar, according to ILNA news agency.

In other words, the poverty line, which until now was estimated at 2 million and 700 thousand Tomans, has now reached 5 million Tomans. “Hussein Raghfar”, an Iranian economist, citing the continuation of this situation and it is said that hunger riots in Iran, this is the next inevitable.

In this chart Comparison of the value of the Iranian currency with the crisis countries.The fall of the value of “Iranian money” not only against the dollar and the euro! But even in the face of the money of the “war-torn” and “troubled” countries like Yemen and Iraq, or even Somalia, Zambia, “Nigeria and Myanmar suffering from famine” are also “falling down”.

The fall of the value of “Iranian money” not only against the dollar and the euro! But even in the face of the money of the “war-torn” and “troubled” countries like Yemen and Iraq, or even Somalia, Zambia, “Nigeria and Myanmar suffering from famine” are also “falling down”.

With these wages, you can not buy bread!

Here I mentioned the ILNA news agency, which states: “The purchasing power of workers was reduced by 72%, and the minimum livelihood rate for the people reached 5 million Tomans.”This means people will not be able to buy bread even with these wages!

Today, after 46 years, the Iranian people are looking for a solution to the problem that the problem is: “The dictatorship is an anti-government regime!” a sovereignty that destroys the social life and livelihood of the nation.

The collapse of the momentum of the national currency and its devastating effects on people’s lives is not something that can be tolerated for a long time. It’s also in a country whose currency reserves are worth $ 150 billion! There is an “expansionism price” and “criminal adventure” is the mullahs in neighboring countries.

A national problem, to “simple language”

Now the problem is not the only problem for the workers and the wage-earner; now, the markets are no longer able to provide their livelihood.

This means the economic collapse of a society, destruction of a country’s economy. while it is a member of a group of the first oil and gas exporters in the world

The minimum wage of a worker on paper and not in the real world! 1 million and 130 thousand Tomans, that is, the price of 22 kg of grapes!

Wage laborer as much as 22 kg of grapes !! 1 kilogram of grapes 470000 Rials!

Community economic collapse

According to the state run news agency ILNA: “What we are witnessing is the collapse of community living.” It is worth noting that “Yahya Al-Ishaq”, a former trade secretary and former head of the Tehran Chamber of Commerce, said that two of the challenges or two priorities of today’s power in Iran are the livelihood of people, especially the middle-to-lower classes and the banking system of the country. In describing the state of the country’s banking system, he said that the country’s banks are now working with 25 percent of their assets, and 75 percent of their assets are imaginative.

But let’s see within the “crisis-driven” regime of the mullahs that I will discuss the economic expert’s views on this situation:

Different opinions

Overall, there are 3 different views about the cause of the currency crisis:

1. One says that the root of rising dollar prices goes back to “enemy plots.”For example, on Sunday, in the midst of a rising dollar, the central bank of the regime issued notifications. In such circumstances, the announcement was expected to contain a solution to prevent the rapid pace of currency depreciation, but this was unthinkable! Why? Because the central bank’s announcement, instead of the solution, said: “These developments are mainly due to the conspiracy of the enemies”! And then he added that we are monitoring the situation, and in the next few days we will also tell you what measures we have! But during these few days, the exchange rate did not wait for the audience and continued its upward trend! So the first group, in one word says the root of the rising dollar price , is related of the enemy and psychological warfare against the ruling system!!!!
2. Some people also say that the cause is underneath a group of profits. For example, a mullah named “Azhay”, a spokesman for the judiciary, announced the arrest of 29 people on charges of “disrupting the economic system” of the regime! Then he insisted that their crime is “corruption on earth and there is a possibility of their execution”!At the same time, a telegram channel called the “latest news”, belonging to the regime, found the root of the problem and said, “Mediators are using arbitrary prices in the streets!” In this case, as usual, they may arrest a number of handwriting elements and small intermediaries, and maybe even execute them so that they can calm down the situation.
3. Some people look for economic problems and the collapse of the regime’s economy in deeper roots.

So can it be said that the sanctions have a role in the increase in the price of the currency?

The best answer is the current situation: are sanctions already started? That currency inflation is so high!

So, The leap for the dollar began two months ago, and now it has peaked! while the first round of sanctions will begin on August 3rd.That is, until today, this jump has been out of the subject of sanctions. So the sanction can not be the root of the problem, of course, it certainly has an impact, and it raises the issues that the regime itself calls “structural problems”. but when we talk about it, the main reason is not.

Even within the regime itself, they can not mention sanctions as the main cause, everyone recalls that Khamenei himself said: “External factors can be effective on the basis of internal problems.”

A foreign exchange shop in Tehran. The rial has almost halved against the dollar since May.

what is the reason?

At this point, one should ask: Which of the options mentioned above are closer to reality?and indeed, what is the root of the dollar price jump?

The regime’s own media responded to this question. in the same first letters of the articles, it invalidated the claim that the reason for a sharp jump in the price of the currency was “the enemy and the psychological warfare.”

The newspaper Jahan Sanaat wrote:”Again the enemy is in the middle, as if we have put our economies in the hands of the enemy in order to guide it anyway, but we do not ask ourselves if they are an enemy plot, then its solution lies in the hands of the same enemies, What is all the pomposity of the story?

“This regime’s media adds: “The color of the face” These days of the currency market are indicative of the structural problems of the country. actually , what’s the problem? The cause is in ourselves.Unless otherwise, it was only in the last few months that the disasters over the “market” came to be the “executor” of the “imperative policies” of the statesmen.

It was after billions of rents that came to the pockets of only a few people with these state policies! “

One of the regime’s theorists also emphasized: the system’s economy has collapsed so far that even if Keynes and Riccardo come together they can not afford to cure, “he emphasized.

The problem opens up in politics. That is, the foundation is a political issue and not an economic one!

What is the meaning of “the root of the economic problem in politics?”

That is, the root of the problem is the existence of the black and medieval dictatorship of Velayat-e Faqih. a dictatorship that is infinitely corrupt. only the assets of one of the “Vali Faqih” affiliated organizations amounted to over $ 95 billion, up to the corruption flowing from above and circulating like blood throughout the regime and themselves called “system corruption” and “institutional corruption” .

Over the last 48 hours, Iran’s currency has lost 14% of its value against the US dollar and there is a sign that the collapse situation will improve.

Iran’s economy is expected to slide further after the US imposes sanctions on the country in the next two days.

The list of sanctions against Iran will be:

• The purchase and sale of bills or dollar-denominated documents by the Iranian government
• Buy and sell of gold and other precious metals, purchase, supply or transfer of metals such as graphite
• The crude or semi-finished raw materials such as aluminum and iron, coal and software used by the Iranian industry
• A release of rial account outside the Iranian borders and exchange of rials with significant currency
• Empicommerce of Iran
• Buy, sell and supply aircraft parts
• Activities of Iran Harbor, Shipping and Shipbuilding industries, including shipping lines of the Islamic Republic of Iran and shipping companies of the South and related companies
• Oil issues and any purchase of petrochemicals from Iran, National Oil Company, Iran National Tanker Company
• Any exchange of financial information between international financial institutions with the Central Bank of Iran or Iranian financial institutions
• The Energy Sector

For certain, this is the reality that the Iranian regimes’ economy is crumbling. This phenomenon has the potential of paving the path for huge protests and uprisings across Iran’s cities

What is the solution?

just for fun: In an unprecedented and ridiculous reaction, Mohsen Rezaee the secretary of the expediency discernment Council, suggests that Iran should enter a war against the United State, capture American soldiers then asking for the ransom to solve the financial crisis in Iran

Really, what is the final word and the right solution?

Indeed, the real solution is to overthrow the integrity of this corrupt and terrorist regime. I hear the final comment from the slogan of the slogans of the Iranian people who say: “The reformist, conservative, was all over. Or that they say death to the dictator. Yes, the solution to all the issues of Iran comes from the overthrow of this regime, and for this reason, the agents of this regime themselves said: “The solution to the current economic problem is political Iran, not financial.

What is your opinion now?