Economic crisis in Iran: Rial falls against dollar, students protest on the streets of Tehran

Students Protest In Tehran Iran: Iran’s crumbling economy and currency ‘Rial’ The record decline in GDP has brought the country to the brink of instability. On Tuesday, thousands of students took to the streets in major cities of the country, including the capital Tehran, to protest against their economic plight and rising inflation.

The demonstration, which comes just a day after a protest by shopkeepers who kept markets closed on Monday, shows that public anger in Iran is now spreading across all sections of society. The onslaught of foreign sanctions and increasing international pressure regarding the nuclear program have broken the back of the common Iranian citizen, due to which life has become completely disrupted.

Outcry from students and universities

Students at 10 major institutions of the country, including seven prestigious universities in Tehran, took out protest rallies and chanted slogans against economic mismanagement. Students also registered their protest in industrial cities like Isfahan, Yazd and Janjan, following which the government has deployed heavy security forces at major intersections. The administration has increased the siege of police and paramilitary forces in many sensitive areas to crush the protests.

Historic fall in Riyal prices

Iran’s currency rial has fallen to an all-time low against the dollar, bringing sales of imported goods such as mobile phones to a halt. The dollar, which was at 820,000 riyals a year ago, has now jumped beyond 1.42 million riyals, causing huge losses to traders. This huge increase in import costs has created a deep livelihood crisis for retailers and middle class families.

President’s appeal and administrative reshuffle

In view of the economic crisis, President Massoud Pezeshkian met with labor leaders and agreed to the protesters’ ‘legitimate demands’. Instructions have been issued to the Home Minister to listen to him. The government has removed the central bank governor and handed over the reins to former finance minister Abdolnasser Hemmati to handle the situation and prevent the currency’s collapse. However, experts believe that unless stringent restrictions are lifted, such changes will prove ineffective.

hit by sanctions and nuclear controversy

The real pressure on Iran’s economy has increased after the United Nations reimposed international sanctions, which are linked to its nuclear program. Western powers and Israel allege that Iran is making nuclear weapons, while Iran has always rejected these claims. The withdrawal of sanctions has seriously affected the country’s oil exports and banking transactions, which is directly impacting the purchasing power of the general public.

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Bitter memories of old protests

The current unrest has raised concerns about the 2022 election of ‘Mahsa Amini’ The memories of the nationwide violence that took place during the agitation and the petrol crisis of 2019 have once again been refreshed. Although the level of protests is not that widespread, the unity of students and shopkeepers is a big warning to the government. The Speaker of Parliament has called for increasing public power, and also warned against foreign agents taking advantage of these demonstrations.