A member of the Iranian Parliament has warned that Iranians’ financial reserves have reached breaking point, stating that the government can no longer continue to drain resources from them.
Referring to the devastating currency fluctuations, Lotfollah Siahkali said, “People’s pockets are ripped. If we were using the people’s money until now, that is no longer possible”.
Amidst ongoing economic challenges including food prices soaring, fuel becoming prohibitively expensive and record unemployment, Siahkali predicted that the latter half of the current Iranian year will prove even more difficult. His comments come in response to significant shifts in the currency market at the start of the year (Mid March), which have fueled inflationary expectations.
Siahkali pointed to the lack of stability in Iran’s economic markets as a catalyst for the populace’s shift towards more stable economic assets and currency such as the US dollar, gold, and real estate to preserve purchasing power against the rapidly depreciating rial.
The rial has suffered dramatically since the US withdrawal from the nuclear deal in 2018 and the subsequent reimposition of sanctions affecting key sectors such as oil exports and banking.
