800 Billion Dollars Flee Iran Over 40 Years
Capital flight from Iran is not a phenomenon that has been recently discovered. This time, however, officials have released figures on the amount of capital leaving Iran during the Islamic Republic’s rule: 800 billion dollars over 40 years.
It is reported that more than one hundred thousand people are waiting in line to obtain investment visas, and even ordinary people and the middle class have begun to consider leaving the country by purchasing homes and villas abroad.
One of the reasons for the currency crisis gripping the country and the continuous rise in the price of the dollar and other foreign currencies against the toman is attributed, among other things, to the tendency to move assets and capital out of the country. This trend has intensified following increased tensions in relations between the Islamic Republic of Iran and neighboring countries, as well as following Donald Trump’s threats.
The website “Fararu” on April 18 published a report on capital flight from Iran. In this report, titled “The Great Capital Exodus!,” statistics and information on the outflow of capital and money from Iran were presented.
The Cost of Reconstruction of Two War-Torn Countries
Farhad Ehteshammzadeh, Chairman of the Board of Directors of Iran’s Importers Federation, announced the news of billions of dollars in capital flight. According to the “Shahrvand” report, the amount of capital leaving Iran over the past 40 years is approximately 800 billion dollars.
The same media outlet noted that with this amount of money, one could easily fund the reconstruction of two war-torn countries. The report states: “To understand the magnitude of this figure, it is sufficient to know that Bashar al-Assad estimated the funds needed to reconstruct Syria at 400 billion dollars. In this way, one can say that over the past 40 years, capital equivalent to the cost of reconstruction of two war-torn countries has left Iran.”
Grounds for Financial Corruption
Ehteshammzadeh also commented on recent policies of the Central Bank and the unified exchange rate of currency in the country. For example, he believes that the Central Bank’s monetary policy regarding the provision of foreign exchange for imports of 33 commodities could create potential grounds for financial corruption.
The Chairman of the Board of Directors of Iran’s Importers Federation stated in this regard: “Any kind of subsidy and restriction creates a potential space for corruption.”
Capital Flight and Migration
It is not only Iran’s capital and wealth that is leaving the country. The phenomenon of capital flight is intertwined with the phenomenon of migration. This is occurring at a time when migration from Iran is not limited to the wealthy and affluent classes of society.
The website “Tabnac” published an article citing Majid Reza Hariri, Vice Chairman of the Iran-China Chamber of Commerce, reporting an increase in demand for investment visas.
According to this report, more than one hundred thousand people are waiting in line to obtain investment visas. Furthermore, more than one and a half million people have applied for migration to Australia and Canada.
According to his statements, even “ordinary people and the middle class” are now considering leaving the country by purchasing homes and villas abroad. He has advised officials to address the phenomenon of migration.
Source: DW
