Governments and the Central Bank are the cause of Iran's inflation

Governments and the Central Bank are the Cause of Iran's Inflation
In an interview with "Compatriot", economic expert Peyman Molavi stated: "In my opinion, the first culprits of inflation and price hikes in Iran are the governments and the Central Bank. These institutions are primarily responsible for the country's economic management, and their decisions have a direct impact on the inflation and price hike situation."

He continued: "In my opinion, impeaching individuals alone cannot solve the problem. The question is, if someone is impeached, who will replace them? Is their replacement more capable of managing this situation? Instead of focusing on impeachment, we should pay attention to who made baseless promises and failed to fulfill their promises. These people must be held accountable."

The economic expert said: "As someone outside the government, I knew that setting a single exchange rate was unrealistic. It is impossible to implement such policies without considering the structure of the vested interests of the economy and market pressures." Some officials even claimed that rents would be eliminated by increasing prices, but in practice we have witnessed an increase in rents.

Molavi stated: Inflation in Iran has several factors. Sanctions are certainly one of these factors, but it is not the only one. Printing money without backing, growing liquidity by 28 percent, and not eliminating budget lines that have nothing to do with people’s livelihoods all play a role in causing inflation. He emphasized: In my opinion, some officials have not yet understood the difference between distributing rent and controlling financial operations, and the FATF and the JCPOA are tools that can help with financial transparency, but they cannot eliminate rents on their own. This issue requires structural reforms in the economy.

The economic expert said: New and virtual businesses are not separate from traditional businesses and are affected by the same economic conditions. With a decrease in per capita income and lack of economic growth, these businesses are also facing serious challenges. Of course, online businesses that offer low-cost products may be able to survive in these conditions, but overall, the Iranian economy is currently in a state of survival.

Molavi finally emphasized: “The only point is that instead of blaming individuals, we should seek to reform economic structures. Without fundamental reforms, changing individuals alone cannot solve the problem.”