Government Treasury Balance is $170 Million; Financial Crisis Has Arrived

Iranian media, citing an official letter from the Minister of Economic Affairs and Finance to the 'Acting President' dated July 28, reported that the cash balance of the treasury is 10.5 trillion tomans, approximately $170 million. The website 'Asr Iran' stated that this amount is literally 'nothing' for a treasury of a country like Iran, as salaries and wages for employees far exceed these figures. Asr Iran emphasized that this does not mean that money will not come in the future and that the government cannot pay salaries. However, it noted that 'the current treasury balance that the thirteenth government is handing over to the fourteenth government is only sufficient to pay the salaries of government employees for 2 to 3 days.' The financial crisis in Iran has arisen due to sanctions stemming from ambitious and 'suspicious' nuclear activities, alongside mismanagement by the government, placing the country in the most difficult period in the last four decades. Problems with oil exports and the return of revenues from them have also posed significant challenges for the production sector. In this context, on July 17 of this year, a member of the 'Chamber of Commerce' representatives announced that the government is facing a 'shortage of foreign currency resources' and that 'the statements of responsible officials regarding the management of foreign currency resources are a kind of politeness.' Hossein Salehvand stated that securing a wide range of imported goods has 'encountered disruptions, and we have now reached a point where the raw materials and necessities required by production units are also not being supplied.' The resistance of Islamic Republic officials to remove existing barriers to delisting Iran from the Financial Action Task Force (FATF) blacklist is among the problems that have complicated Iran's economy. Additionally, international sanctions imposed due to the lack of transparency in Iran's nuclear program in recent decades have restricted the Islamic Republic's access to foreign currency resources. The ongoing trend of the national currency's depreciation; the dollar has entered the 58,000 toman range. The Secretary-General of the Iran-Iraq Joint Chamber considered the 'removal of the dollar from transactions' as an 'opportunity.' The reaction of educators' organizations to the 2024 budget bill: more pressure on teachers and retirees.