Six years ago, Iranians saw the Tehran’s nuclear deal with world powers as a chance for the Islamic Republic to re-enter the world economy and to create opportunities like purchase airplanes and selling it’s oil on the international market, this resulted in celebration by the people.
However, in the recent times, the dream has become a nightmare due to the weakening national currency and high unemployment which had only become worse by the coronavirus pandemic.
The people living in the Islamic Republic point to the economy as a major issue, whereas the West considers Iran’s nuclear program and Mideast tensions as the most important issue faced by Tehran.
The presidential elections will begin from June 18 which has caused major concerns for the nation. Whoever takes the presidency will have to face the difficulties to reform the economy of the sate.
In 2018, then US President Donald Trump unilaterally withdrew America from Tehran’s Nuclear deal with world powers which accelerated the economic freefall of Iran.
In July 2015, during those nuclear deal celebrations, $1 bought 32000 rials, where as now, $1 buys 238000 rials.
The price of milk has raised up to 90 per cent. Whilst the imported goods price have skyrocketed.
In Tehran, a 48-year- old man said to the Associated Press Journalists, “The inefficiency of the officials; especially the president, who gave empty promises and deceived the people, has unfortunately led to renting a house become a dream for the people.”
In August 2020, the government encouraged the public to buy the Tehran stock exchange when it’s value shot up to 2 million points. But the values dropped nearly half, resulting in the investors remaining stuck with the stocks they can’t sell.
An economic analyst, Mahdi Samavati said, “The biggest challenge for the next president is to restore the trust and confidence to the stock market.” It is a hard task as the people have seen their money melting away for 10 months. The longer the crash takes, the longer it would be to regain the trust and fix things.
President Joe Biden had said that he is “willing for the US” to return to the agreement.
Rial’s value will drop further without the hard currency of oil sales, which would likely lead Iran to print more rials in order to fund the populist programs such as the cash handouts and subsidised housing. Due to this the expenses of good will also increase.
Samavati said that if the next government prints money then without a doubt we would have resulted in the “unleashed growth in inflation.”
In a presidential debate in Iran, Abdolnasser Hemmati; former Central Bank Chief, warned and said, “I don’t see a way to fund the colourful and fascinating promises of my rivals.” He also mentions how these people were not talking about distributing wealth but were talking about distributing ‘poverty.’
People from different classes of society have started speaking about the inefficiencies, cruelty, poverty, discrimination and corruption.
No other candidate except Hemmati has offered any specific thoughts on the economic policy.