Continuing Consequences of Interference in Currency and Stock Markets; Legal Cases Formed Against Hassan Rouhani

The spokesperson for the judiciary referred to the violations committed by former President Hassan Rouhani in currency and stock market interventions, stating that cases have been formed against him. Masoud Setayesh emphasized that he is in the 'clergy status,' and cases have been established for him in the 'Special Prosecutor's Office for Clergy' while maintaining the relevant judicial jurisdiction. Interference in the currency market and manipulation of the stock market for profit were among the accusations repeatedly raised during Hassan Rouhani's presidency. The stock market, which experienced one of its bitterest periods during Rouhani's second term, became the focal point of criticism from the public and experts. In this context, two officials from the Central Bank during Rouhani's administration were arrested, with Valiollah Seif as the then Governor of the Central Bank, Ahmad Iraqi as the currency deputy of the Central Bank, and Salar Aghakhani as the individual assigned by Central Bank officials for 'illegal' currency transactions, being sentenced in October 2021 to 10 years, 8 years, and 13 years in prison, respectively, for 'disrupting the order and tranquility of the country's currency market and facilitating illegal currency trading.' However, these sentences were ultimately overturned on Thursday, July 20, by the highest judicial authority in the Islamic Republic, and the case was sent back for retrial to a parallel court. Yet, the interference in the currency market had another aspect, with media outlets affiliated with Ibrahim Raisi's government identifying Hassan Rouhani as the main actor. In this regard, the state news agency 'IRNA' reported on June 13 that in the years leading up to the 2017 presidential election, tens of billions of dollars from the country's foreign reserves were spent on 'suppressing the exchange rate' and 'creating false achievements' to secure Rouhani's re-election under the guise of 'maintaining the national currency's value.' This news agency emphasized that the level of Central Bank intervention in the unofficial currency market during 2016 and 2017, coinciding with the JCPOA and the so-called 'lifting of sanctions,' not only peaked but also broke records. The author of this piece believes that the sharp increase in 'currency interventions' by the Central Bank during 2016 and 2017 is clear evidence of the Rouhani administration's electoral exploitation of the country's foreign reserves. Generating income from the stock market and imposing heavy losses on shareholders was another accusation against Rouhani's government, with Mostafa Omid Ghaemi, CEO of the Iran Fara Bourse, stating in August 2022 that 'in the previous government, since they wanted to secure their resources from the capital market, a bubble was created in the capital market, and prices moved in that direction.' The Tehran Stock Exchange began its decline in August 2020. The total index of this stock exchange was 508,000 units at the beginning of the year and crossed the 2 million unit mark on August 19, setting a historical record, but then entered a downward trend, and by the last working day of Esfand, the total stock index had dropped to 1,307,000 units. When the removal of the dollar from trade caused the loss of one billion dollars, the Rouhani and Raisi governments accused each other. Hamid Abutalebi, an advisor to Hassan Rouhani, stated: 'All the misery that has befallen Iran comes from Russia.' Economist Hojjat Mirzaei noted that Iran's economic growth over the past decade has 'almost reached zero.' The performance of the Raisi government at the halfway point shows that housing prices have increased by nearly 110% in two years.