Jahangiri currency removed; imports only with single-rate currency
From April 11, 2018, when Hassan Rouhani's government established a dual exchange rate, to May 9, 2022, when Ebrahim Raisi announced its elimination, what people felt was that their tables were becoming emptier.
An economic expert considers the 4,200-toman currency the worst policy in the country's economic programs in the past 50 years, saying: "The preferential currency was undoubtedly harmful to the Iranian economy and inflationary for the country's economy, but eliminating it in its current form will create many problems for the people."
In an interview with domestic media, Ali Saadovandi considered the return to the coupon era unacceptable and stated that rationing items such as bread also lacks the necessary efficiency and is ultimately doomed to failure.
On the evening of May 19, the head of the 13th government announced the end of the 4,200-toman exchange rate and said, "From now on, the official exchange rate is 23,000 tomans, and all the goods needed by the country will be provided with this amount." Without referring to the recent price increases and shortages in the medicine and bread markets, Ebrahim Raisi said that the prices of bread, medicine, and gasoline will not increase at all.
The 4,200-toman currency, known as the Jahangiri currency, entered Iranian economic literature in April 2018. Initially, this currency was used for many goods and services without any restrictions, but over time, its payment was limited to basic goods. However, the 11th parliament required the government to completely eliminate the preferential currency in the 1401 budget, but on Sunday, the same parliament sharply criticized the economic performance of Ebrahim Raisi's government, especially the increase in the price of flour, and announced that people are more worried than before.
But the Shiraz representative believes that eliminating the state currency under the pretext of fighting corruption will put more pressure on the weak. Alireza Pak-Fetrat says: “One of the alleged reasons for eliminating the preferential currency is to prevent corruption, rent-seeking, and abuses by the aghazadehs, but since the government is unable to prevent corruption and confront rent-seekers, eliminating the preferential currency with a wrong policy will pave the way for the destruction of the weak and create a deeper bipolarity in the country.”
Economic expert Pouya Jabal Ameli also considered the main reason for eliminating the 4,200-toman currency to be the decrease in oil sales in previous years, saying, "During this period, we took 24,000 tomans from the exporter and gave 4,200 tomans to the importer, which caused inflation."
Now, after much wrangling between supporters and opponents, the preferential currency or Jahangiri currency, or the 4,200-toman currency, has become a memory, and bread and flour have become more expensive, like pasta and medicine. However, the head of the 13th government has said that he will temporarily increase subsidies for the people to compensate for the price increases. Of course, the Subsidy Targeting Organization has announced that people should be patient until the resources to pay the subsidies are secured.
