Financial crisis is shaking Iran's political system

Financial crisis is shaking Iran's political system

Iranian currency market is experiencing the most sever crisis in its entire history. Rapidly falling Iranian rial damages already slow economic growth. If at the beginning of this year one dollar could be sold for less than 43,000 rials, on September 3 it reached 129,000. In other words, since the beginning of this year, rial has fallen in price three times compared to the dollar.

This problem is even more relevant since the country's leadership is finding it increasingly difficult to maintain public order. Current situation was another test of President Hassan Rouhani, who, in the opinion of Iranian parliamentarians and public, is responsible for failing to preserve the nuclear deal, as well as for the vulnerability of Iranian economy, which was supposed to be restored after signing of the JCPOA. Difficult economic conditions led to protests in several Iranian cities.

The most difficult situation is in Tehran, Isfahan, Shiraz. Political slogans can be heard more and more among purely economic slogans. Iranians are seriously discussing further stay the of Islamic Revolutionary Guards in Syria and provision of support (including economic) to Bashar Assad. People are dissatisfied with the fact that Iranian authorities spend money on the war in Syria and on Lebanon's support in conditions of economic crisis in Iran.

Foreign analysts predicted the option of power shift in Iran since January, believing that due to the pressure that Hasan Rouhani is experiencing from conservative block of the Iranian parliament, he will be forced to resign. However, such predictions were premature, since President Rouhani continues to enjoy support of the spiritual leader of Iran Ali Khamenei.

Nevertheless, Hassan Rouhani will have to take responsibility for loosing access to international financial systems. This issue was relevant even before the resumption of US sanctions against Iran. Right now these restrictions are imposed against the export of heavy industry products and the financial sector. However, in November, Iran will face another round of the US sanctions.


Vestnik Kavkaza

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