— P.M.O.I (@Mojahedineng) June 12, 2018
Several weeks before the first round of U.S. sanctions kick in, reports from inside Iran indicate the prices of the U.S. dollar, gold “Bahar Azadi” coins and cars are on the rise significantly.
On Monday in Tehran’s currency market the U.S. dollar price witnessed another surge, reaching 69,000 rials.
The price of Iran’s “Bahar Azadi” gold coins has recently surpassed the 25 million rial mark ($5,950), showing a 4 million rial (19 percent) increase in comparison to the week before.
Car prices have also increased in the past ten days. Reports indicate these hikes range from 20 million to a whopping 400 million rials ($475 – $9,525).
The state-run Asre Iran website said these price hikes are in response to a number of foreign car companies, including Peugeot, Citroen and Hyundai exited Iran’s market.
Peugeot 2008, the first vehicle manufactured in a joint effort between this company and the Iranian regime under a recent agreement, witnessed a price increase of 250 million rials ($5,950). The limited production of these vehicles are the reasons behind this price hike, the Asre Iran website claimed.
Some economic analyst also believe the increase in the exchange rate and the prices of some goods should be associated to rising inflation in Iran, which is due to the regime’s inefficiency and irregularities in its budget.
Many Iranians are now investing in gold following the failure of several financial institutions to deliver the interest they promised their customers.
As Iran‘s economic crises increase, reports indicate the prices of vehicles are skyrocketing with each passing day. Some are saying auto prices are “exploding.
After at least 36 steel workers were arrested last night (Monday, June 11) in Ahvaz, south-west Iran, on Tuesday hundreds of workers protested outside the Governor’s Office chanting “Detained workers must be freed.”
Despite the mass arrests of Monday night and the heavy presence of the regime’s suppressive security forces, the workers rallied on the street outside the governorate of Khuzestan Province.
According to reports received today, the regime’s suppressive security agents attacked today’s protest and arrested at least 10 more workers.
Also, on Monday steel workers of Ahvaz demonstrated in the city center with chants against the mullahs’ regime.
While Iran’s economy desperately needs macro investments, the official figures show that even the 2015 nuclear deal, aka JCPOA, has failed to pump necessary capital into the country’s economic arteries.
Meanwhile, the consequences of the US withdrawal from the deal will make it even more difficult for the Iranian regime to absorb foreign investors.
the United States has threatened to punish companies and banks that keep trading or cooperating with the Iranian regime, a punishment that would involve heavy financial fines and cutting access to the United States’ financial system as well.
Under such circumstances, it’s not conceivable that European banks are willing to take the risk of doing financial transactions with the Iranian regime.
So, it’s quite predictable that it would be more difficult than ever for the Iranian regime to absorb foreign capital with the sanctions re-imposed and regime’s banks once again disconnected from the international financial network.