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The Iranian economy is deteriorating, mainly due to the re-imposition of United States sanctions in response to Tehran’s destabilizing policies in the region and the world.
The high cost of living and the difficulty of living for most Iranians have sparked widespread protests since late 2017.
Thousands of Iranians, most of them from the lower middle class, took to the streets last November to protest against the rise in the price of fuel, which caused the biggest crisis in Iran since 1979.
In response, authorities announced last month that they intended to allow nearly 49 million Iranians to exchange so-called “capital shares,” a program launched in 2006 to distribute shares in state-owned companies at low prices to low-income people. .
While the Corona virus crisis and the collapse of oil prices affected Iran’s weak economy, the stock market has increased to those of the local currency since last March, which has encouraged many Iranians to seek higher yields. than those generated by cash.
Purchase of accounts receivable
Reuters quoted a bank employee in Tehran as saying: “People are withdrawing their savings from banks to buy shares. Daily interest rates have dropped from 15% to 8% in recent weeks.”
“The official establishment is fully aware of all these economic difficulties … and one of our concerns is the renewal of demonstrations like last year,” said a senior government official, who asked not to be identified. The goal is for people to see that the Islamic Republic is interested in them. “
Capital shares, with a total value of approximately $ 19 billion, were awarded at the market price, keeping holders of cash dividends intermittent throughout the years.
“The government can raise liquidity, but people will be impoverished when the bubble bursts sooner or later,” said a senior official at the Central Bank of Iran, who spoke to Reuters on condition of anonymity.
Iran, heavily affected by international sanctions, shut down all unnecessary economic activities in mid-March, weeks after the deadly virus broke out on its territory.
But senior officials have said Iran’s essentially depleted economy cannot remain closed, and President Hassan Rouhani has allowed low-risk companies to reopen since April 11.
Agence France-Presse said that almost all retailers opened their stores in the Tarsh market in northern Tehran.
But Health Ministry spokesman Kyanosh Jahanpur called on citizens to be careful in announcing the latest death toll from the epidemic.
