On June 24, Tehran witnessed protest gatherings against the unprecedented and disproportionate rise in the dollar’s rate.
Protesters staged demonstrations at Charsotrahan bazaar and the Aladdin shopping center (Major Mobile Sales Center), as well as the Istanbul Crossroads and Ferdowsi street, south of Saadi street, the Republic intersection.
They were chanting: “Leave Syria, think about us,” and “Don’t be afraid, don’t be afraid, we are all together”, and “Strike will continue every day, and “Dollar’s rate is ten thousand Toman, we don’t want, we don’t want”.
The protesters also called for a total strike by chanting “strike, strike”.
Behind the scenes
While currency rates and the price of gold are increasing at a very fast rate in Iran, resulting from the regime’s economic turmoil after the U.S. pulled out of the Iran nuclear deal, the state-run Tasnim agency (affiliated to the Revolutionary Guards’ Quds Force) cited an economy expert saying, “With this currency policy the government is only helping corrupt businessmen and smugglers, while the Vice President had pledged to prevent further smuggling.”
Government behind currency smuggling market
Hoshiyar Rostami, known as a so-called reformist economy expert, said in this piece, “The (Rouhani’s) government is not managing the currency market. Instead, they have created an unofficial market involved in currency smuggling. There are also hidden deals among the exchangers. It may appear that they have closed down their shops and there are no official deals made. However, the customers can do their deals at higher prices in the cars parked outside of the exchange stores and the exchange store representative receives the deal price through a P.O.S. device and delivers the currency. All this comes after [Vice President] Eshaq Jahangiri had pledged the government will prevent the currency smuggling rings.”
Market inflation
“There is no control over the currency market. The people, seeing the country’s economic situation, are seeking to safeguard their assets. That is why they are rushing to the currency market, resulting in increasing demand,” Rostami added, explaining how the status quo is due to the government’s policies, or lack thereof.
U.S. exit impact
Iran’s economy and the currency market has been deeply impacted by the recent political development. Issues such as Iran possibly exiting the nuclear deal – officially known as the Joint Comprehensive Plan of Action (JCPOA) – and the Financial Action Task Force (FATF) agreement bear the potential of creating two poles in this country, consisting of those for and against these pacts resulting in a major rift.
The liquidity Iran’s economy is experiencing would literally destroy any country. Furthermore, if people begin pulling their assets out of the regime’s banks, the economy will literally collapse.
The Iranian regime needs unity at the time being and taking unified decisions, especially after the U.S. exited the JCPOA. Rest assured the Iranian regime will ever achieve this unity.