The price of the USD went up last week from 3791 to 3797. The Bahar Azadi gold coin has gone up to 1,169,000 tomans – a rise of 5600 tomans since the day before. In the capital market, the shares of seven auto manufacturing groups traded lower.
The situation in Iran is desperate. Reports state that 11 percent of the country’s population is below the absolute poverty line. Thirty percent are below the relative poverty line.
This means that the 11 percent below the poverty line – around 8.8 million Iranians - cannot provide themselves with even the most basic of needs like healthcare, food, housing, and education. These people are often malnourished and suffering from hunger. This 11 percent is also a minimum estimate - some experts believe that the number is closer to 30 percent.
The relative poverty line includes people whose income is lower than the standard household spending level. This 30 percent, also a minimum estimate, means that at least 24 million people in Iran are affected.
Estimates about the amount of Iranian people living under the poverty line go as high as 90 percent, and certainly more than 80 percent.
The government’s debts to banks is 20 percent more than it was this time last year – around 210,000 billion tomans.
Ridiculous policies regarding banks are worsening the economy of Iran. Even President Rouhani’s economic advisor was fairly negative about the situation. He said: “The banking system has been hit more than any other entity by bad policies, particularly over the past ten years, and there’s no sign of a turning point, either.”
Speaking about the financial situation in general in Iran, the economic advisor said: “Iran’s economy is at a historic juncture. The decision makers have no option but to choose between bad decisions and hard decisions. Iran’s future economic path can only be paved by reviving its lost social capital.”
The Central Bank reported that the cost of basic commodities in Iran is also on the rise. Costs for rice have gone up by more than 30 percent, 27.5 percent for fresh fruit, 23.9 percent for sugar, 21.7 percent for grains, 12.9 percent for tea and 9.7 percent for dairy items.