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Last Updated: October 29, 2020 7:41 PM
Iranian currency is at its lowest level against the dollar
The collapse of the Iranian economy is not gradually the same as before, as the Iranian government’s mistaken policies to deal with financial crises, and the size of the sanctions recently imposed on Tehran as a result of its aggressive actions in the region, led to a very significant deterioration in the value of the currency and the decline of the stock market to very low levels.
In a sign of the emergence of a new face to the Iranian economic crisis, an Iranian newspaper reported that no dollars are entering the country due to the US financial embargo.
Iranian government spokesman Ali Rabiei had said that “the recent drop in the Tehran Stock Exchange index has clear economic reasons”, denying the government’s role in this drop.
This, although press reports indicated that the government’s dispute over the appointment of the president of the Securities and Exchange Commission had caused the stock index to fall, Rabiei said that these explanations are “false excuses that are unfounded.”
Since the second half of August, the Tehran Stock Exchange index, which rose to 2 million units, began to fall rapidly, closing at 1.3 million units on Tuesday, October 27.
Earlier, many experts warned of a bubble on the Tehran Stock Exchange and attributed it to “government manipulation” in the stock market.
The Iranian government had planned to make up this year’s budget deficit by increasing sales of state assets and state enterprises tenfold, as well as issuing more bonds.
The resources included in this year’s budget for the sale of movable and immovable property of the government amount to about 495 billion riyals, or almost $ 11.7 billion.
Several reports indicated that the government was manipulating the stock index to get more sales of real estate and state-owned companies.
For its part, the Iranian daily “Eqtisad Sarmid” stated, in a report on Thursday, that the Iranian economy is suffocating, “and called to abandon arrogant rhetoric and confront the world,” as it described it.
The newspaper wrote that “the Iranian economy is isolated due to two factors, one of which is the government’s failed economic policies and the other is sanctions.”
He added: “This led to the closure of all entry points of the dollar to the country due to the restriction of banking and monetary exchange with Iran and the financial embargo.”
