Khamenei, Without Mentioning His Role in Sanctions, Urges Raisi to Neutralize Sanctions by Reducing Inflation

Ali Khamenei, the leader of the Islamic Republic of Iran, claimed during a meeting with members of Ebrahim Raisi's government that most sanctions are imposed with the aim of holding the people's livelihood hostage and stated that sanctions can be neutralized by reducing inflation. According to a joint statement released by the office of the Supreme Leader to state media, on Wednesday, September 8, he emphasized that any economic decisions made by the government should consider their impact on class disparity, market stability, exchange rates, inflation reduction, and production growth. Khamenei claimed that a significant number of macroeconomic indicators show growth and progress. His remarks come as he made no reference to his own role and that of the Iranian government in the imposition of sanctions by the United States and Western countries. The main global sanctions against the Islamic Republic are due to its controversial nuclear program. From the government of Mohammad Khatami to Ebrahim Raisi, their roles have followed the leader's policies in the nuclear field. Even the direct talks with the U.S. that led to the 2015 JCPOA agreement were approved by the leader. The U.S. and Western countries have imposed sanctions against the Iranian government and officials not only because of the nuclear program but also due to the Islamic Republic's support for terrorism in the region and human rights violations. Previously, a spokesperson for the U.S. State Department told the Persian section of Voice of America that the Biden administration will continue to implement 'strict' sanctions against the Islamic Republic, including those related to oil and petrochemical trade. In response to statements made by Nasser Kan'ani, the spokesperson for the Iranian Foreign Ministry, regarding an 'agreement' between Tehran and Washington and the continuation of Iranian oil exports despite sanctions, he stated that oil export figures fluctuate regularly over time and depend on prices and methodological changes, 'but the framework of U.S. sanctions against Iran remains strong.' Khamenei's emphasis on neutralizing sanctions through inflation reduction comes as the Economy News website responded to similar claims on July 6, stating that as long as sanctions exist, inflation reduction is merely a slogan. This website described the country's economic conditions, noting that there is no proper policy to curb inflation; no contractionary policy has been prepared; the banking structure has issues, with interest rates at minus 20 percent, and ultimately, the problem of sanctions exists, which is the root of many issues. The Etemad newspaper also referred to the idea of reducing inflation without regard to sanctions in a report published in May of this year, stating that considering superficial remedies for reducing inflation is akin to suggesting that two cars in a head-on collision should buy air fresheners. Khamenei's claims come as on July 18 of this year, the Trade Studies and Research Institute affiliated with the Ministry of Industry, Mine and Trade warned about the continuation of sanctions and the Islamic Republic's macroeconomic policies, stating that with the continuation of sanctions, there will be a continued decline in social capital, increased uncertainty, and consequently, capital flight from the country. The research arm of the Ministry of Industry also predicted that if the current conditions continue, the dollar rate will fluctuate between 55,000 to 65,000 tomans, and in the event of any tension or unrest, a surge in the exchange rate will occur. The report adds that the consumer inflation rate is estimated to be between 55 to 60 percent and the producer inflation rate between 50 to 55 percent. The main problem in Iran's economy is identified as sanctions and restrictions on financial and monetary transactions. Furthermore, the decline in real income, the drop in household purchasing power, and the rise in the poverty line are considered the main social issues, while in terms of management and budgeting, the budget deficit due to structural problems in the banking system and pension funds is highlighted. An examination of various reports published in Iranian media and expert opinions indicates that the main driver of inflation in Iran has been the policies of the Islamic Republic, and as long as these policies continue, the economy and livelihoods of families will remain hostage to ideological debates. On Tuesday, Ebrahim Raisi, the President of Iran, participated in a press conference on the eve of the government event 'Government Week' in Iran and claimed that the country's economy has improved, while economic experts have told Voice of America that inflation and economic growth in Iran are concerning. Government statistics also indicate over 90 percent inflation for meat; Reza Ghaibi explains the verification of 10 claims made by Ebrahim Raisi; the Iranian economy has not grown. Exclusive: The U.S. continues to implement 'strict' sanctions against the Islamic Republic. Government agents attacked a gathering of defrauded investors in front of the Chief Justice's office. Raisi spoke of 'economic prosperity' and 'nearing the peak' in the press conference; Raisi does not accept the realities. A member of parliament stated: controlling inflation did not work; people do not believe in inflation reduction.