Economist: Government's claim to support the poor by eliminating preferential currency is a "lie"

After one hundred days of the 13th government's activity, the price liberalization plan was launched to compensate for the budget deficit, and a bill to eliminate preferential currency for imports of livestock inputs, medicine, and medical equipment was sent to the parliament. Despite economists' warnings about the negative consequences of this decision, the dollar's price growth trend in Iran's free market continues to increase.

Ebrahim Raisi's government, concluding that the preferential dollar of 4,200 Tomans, which was introduced into the Iranian economy three years ago for the import of livestock inputs, medicine, and medical equipment, has fueled rent-seeking and corruption, has decided to eliminate subsidies related to the import of these basic goods.

In a recent interview, Raisi attempted to blame the previous government for this situation by referring to "tables," "the value of the national currency," "government debt," and "budget deficit."

But despite Ebrahim Raisi's election promises to curb inflation and high prices, since his government came to power, the prices of food and basic goods have increased by more than fifteen percent and eleven percent, respectively. Also, the exchange rate has continued to increase due to the existing inflation and the devaluation of the national currency, so that the price of one US dollar has approached the channel of 29,000 tomans from about 25,000 tomans.

Meanwhile, the First Deputy Chairman, while attending the home appliance market, expressed hope that the government, through continuous monitoring and cooperation with manufacturers, can further stabilize the situation in this market and take steps towards controlling prices.

But why has the so-called policy of financial repression and government mandated measures not had a significant impact on controlling inflation? According to Hossein Salah Varzi, vice president of the Iranian Chamber of Commerce, economic policymakers reduce the market to a "distribution network" and the price to an "accounting decision in the firm."

In response to Mohammad Mokhbar's presence in the home appliance market, he tweeted that trying to curb inflation through price inspections and control is like trying to treat smallpox with foundation and other beauty products.