Beginning of Electronic Coupon Payments to Some Individuals to Compensate for the Effects of Sanctions

Fars News Agency reported that the first amount related to the government's support package, aimed at compensating for the economic impacts of U.S. sanctions, has been deposited into the accounts of individuals covered by the Imam Khomeini Relief Foundation, amounting to 200,000 tomans. According to this report, individuals receiving this money cannot withdraw it from their accounts and can only purchase 'essential goods (food items)'. Iranian media have previously referred to this plan as 'electronic coupons'. On Sunday, November 20, the news agency cited an unnamed senior government official stating that 'a support package has been planned for individuals covered by support institutions, including the Imam Khomeini Relief Foundation, the Welfare Organization, and families of martyrs and veterans, which is gradually being distributed.' Mohammad Baqer Nobakht, head of the Management and Planning Organization, announced on September 7 that five support packages were prepared to assist five groups against U.S. sanctions and currency market fluctuations, including the provision of essential goods and support for low-income individuals. Subsequently, Anoushiravan Mohseni Bandpay, head of the Welfare Organization, announced on November 1 that a food support package worth 600,000 tomans would be distributed in three phases among families with incomes below three million tomans. According to Mr. Mohseni Bandpay, stores have also been designated for receiving and distributing food support packages in the first ten days of November, with a ceiling of 600,000 tomans for this support package. Fars News Agency also reported that 'gradually, a support package will be considered for employees and retirees.' This government official also mentioned that the government is seeking to 'identify workers' earning less than three million tomans. Ahmad Midari, Deputy Minister of Cooperatives, Labor, and Social Welfare, announced on Sunday, September 16, that this ministry has proposed a plan to allocate 'goods cards' to 10 million people with a monthly amount of 100,000 tomans to the government. According to Mr. Midari, in this plan, the bank cards of individuals receiving subsidies will be converted into 'goods cards', allowing individuals to receive essential goods from stores up to a specified amount. Iranian media have referred to the 'goods card' as 'electronic coupons'. Meanwhile, Masoumeh Aghapour Alishahi, Vice President of the Economic Commission of the Parliament, stated that the first support package will be paid in cash, and subsequent packages will be distributed in the form of food items. She also mentioned that the number of support packages depends on the impact of sanctions. She added: 'The government must be able to cover the necessary costs, which depends on oil sales.' During the Iran-Iraq war and for several years afterward, some food items, including meat, rice, and sugar, were distributed among the people in coupon form. Following the U.S. withdrawal from the JCPOA and the increase in the dollar price, reports have emerged about some individuals hoarding goods. The increase in the dollar price has affected other economic indicators in Iran, and in July of this year, the point-to-point inflation rate exceeded 24%, with monthly inflation reaching 5.5%, breaking a twenty-year record.