Khamenei: Current Economic Problems Have Caused Hardship for Many People

The leader of the Islamic Republic of Iran emphasized that the current economic problems in the country, particularly inflation and decreasing purchasing power, have put a strain on the livelihoods of many people, especially the lower classes. According to the website of Ayatollah Ali Khamenei, during a meeting with the heads of the three branches of government on Wednesday evening, October 10, he urged them to make 'serious decisions.' He stated that these 'serious and operational decisions' should particularly address 'the problems of the banking system, liquidity, employment, inflation, and the budgeting process.' Iran's economy has faced serious challenges, especially since the re-imposition of U.S. sanctions, with the International Monetary Fund predicting that Iran's economy will experience 'severe stagflation' this year and next. The first round of U.S. sanctions against Tehran began in mid-August. However, the Supreme Leader has stated that U.S. sanctions are one of the two main factors causing problems, with the other being 'internal and structural challenges' within the country's economy. Political and economic analysts have repeatedly pointed to structural problems in Iran's politics and economy. For instance, Mehdi Karroubi, a critic of Ayatollah Khamenei who is under house arrest, wrote in a letter last month: 'With this management style, the country has returned to the Qajar era.' Many economists have also criticized the economic management style that has persisted for decades in various letters to the leaders of the Islamic Republic. About two months ago, the Supreme Leader referred to one of these letters and acknowledged that 'most' of the proposed solutions were correct. The 38 signatories of the letter that the Supreme Leader referred to attributed the recent economic crises in Iran to public distrust in the Islamic Republic and instability in its positions. In his remarks on Wednesday evening, the Supreme Leader also called on the government to utilize 'the opinions and solutions of concerned economists and private sector activists.' Recently, a video has circulated on social media purportedly showing the head of the Tea Producers and Traders Union speaking at a meeting with the Minister of Industry, Mine, and Trade. In the video, it is stated that the country's problems are not due to sanctions but rather 'mismanagement and lack of governance,' and that the government of Hassan Rouhani 'crushed us.' The second round of U.S. sanctions against Tehran, which will target Iran's oil sales and banking transactions, is set to begin in mid-November. Some managers of international oil companies say that with the start of the next round of U.S. sanctions, Iran's oil exports will be impacted much more than previously anticipated.