Continuing Consequences of Command Economy; An Economist: Currency Resources Looted and Bank Debts Have Tripled

An economic expert in Iran has announced that based on statistics, Iran's "currency resources" have been "looted" in recent years, and that bank debts to the country's monetary and financial network have "tripled." Said Leylaz, an economist and political activist from the reformist faction of the Iranian government, told the newspaper "Etemad" that one of the "very concerning" statistics of Iran's economy is the "delinquent foreign loans" in the year 1401 (2022-2023), which have risen from "8.8%" in 1399 (2020-2021) to 16.6% (in the last three months of 1401). According to him, this means that almost "every person who took a foreign loan in 1401 has not repaid it," and if these statistics are correct, the percentage of delinquent loans has "doubled" in two years. In other words, in these two years, foreign loans in the country have not been repaid, and this is in a context where the Iranian economy is "very inflated" and has increased by more than "100%" according to the country's currency rate, which, according to Said Leylaz, indicates that "government currency resources in Iran have been looted by certain individuals and groups." The state and free currency market situation in Iran has faced significant turmoil and disorder in recent years, especially after the rise of Ebrahim Raisi's government, despite numerous promises from government officials. Kamran Soltani, the secretary of the Iranian Currency Exchange Association, reported on Thursday, August 5, that the dollar has become "seven-tiered" in the Iranian currency market and stated that the Central Bank of the Islamic Republic is officially conducting "currency interventions" in four neighboring countries. Said Leylaz announced that economic indicators show that in the year 1401, "bank debts to the Central Bank" have faced a growth of more than "threefold," meaning these debts have "increased by 198 to 200%." He noted that these increases could be due to the "inherent imbalance of banks," as evidence shows that "Raisi's government has been completely unsuccessful in addressing the banks' imbalances so far." Mohammad Reza Farzin, the head of the Central Bank of the Islamic Republic, announced on September 7 that 88% of the "country's financing" is primarily borne by banks, stating that "government financing" is also done by banks, which puts significant pressure on the banks' resources, one of the factors of "banks' imbalance" being this "pressure regarding financing." According to a report from the Heritage Foundation website, Iran's "economic freedom score" in 2023 is estimated at 42.2, placing Iran in the "169th economic freedom" rank globally and achieving the "14th rank" among 14 countries in the Middle East and North Africa. Meanwhile, Jabbar Kouchakinejad, a member of the Joint Commission of the Seventh Development Plan of the Islamic Republic, stated on September 15 regarding the consequences of the command economy and the repeated interventions of state institutions in Iran's economy that "currently, banks have almost halted investment due to inflation." Due to the lack of transparency and the absence of independent institutions in the economic system of the Islamic Republic, official statistics are always met with skepticism from independent experts. Therefore, it is necessary to mention that the "official" figures announced by the institutions of the Islamic Republic cannot be verified by independent entities from the government. Protests over living conditions in Iran continued with gatherings of telecommunications retirees in seven provinces. The U.S. protested against Iraq for fraud, money laundering, and circumventing the Islamic Republic's sanctions. The rise in food prices in Iran intensified, with red meat and canned fish at the top of the price increase. Protesting retirees gathered in six provinces. The head of the Central Bank announced the removal of the dollar from "tourism exchanges" with regional countries. Protests over living conditions continued in six provinces of Iran, with gatherings of telecommunications and broadcasting retirees. The manipulation of statistics and the provision of false information continue; Raisi claimed to compensate for the budget deficit without borrowing.