Iran Economy NewsIran’s Severe Political Isolation and Foreign Trade Impasse

Iran’s Severe Political Isolation and Foreign Trade Impasse


Peyman Pak, Head of Iran’s Trade Development Organization, in a TV interview with the state Channel One on October 18, 2021, said:

“Iran’s share from trade with neighboring countries is below one percent.”

Seyed Razi Haji Aghamiri, former head of Iran’s Export Confederation, in the same TV interview said: “Our political relation with the countries has a so bad situation that all are concerned about the return of the export currency. In practice because of the sanctions the baking network is cut off therefore, even smuggling is not possible.”

The state-run website Tejarat News on October 13, 2021, wrote that the Iranian carpet export is nearly zero and that the prohibition of carpet export to Turkey was the final blow.

Even Iraq which was a heaven for the Iranian regime to escape from the sanctions its doors are closing on the regime especially after its election which was a strong hit on the regime’s proxy forces and their political wings and the regime’s dream of a $20 billion non-oil trade with this country is fading away.

On the other side, Turkey’s Ministry of Energy announced that Turkey has signed an $11 billion gas contract with the state of Azerbaijan. Turkey’s gas contract with the Iranian regime will end at the end of this winter.

After the events in Afghanistan and the Taliban’s reign, the regime has lost its money resources especially its money laundering in Herat.

After the fights between Azerbaijan and Armenia, all the regime businesses with Armenia and Russia have been affected by this conflict and have reached their lowest level over the past years.

All these happen in a situation when the regime is struggling with the sanctions. And its oil export has reached its lowest level. The regime’s Chamber of Commerce officially spoke about a 99 percent decrease in oil export to China, something that the regime regret after it became public.

Even some outlets announced that the statistics of the Oil tanker tracking companies do not comply with the statistics announced by the regime referring to its oil export to China. This becomes even worse after China said that they have not bought even one barrel of oil directly from the Iranian regime.

Now add to all these problems the regime’s stagnation in accepting the FATF and its impossibility in international financial transactions, then you will realize the regime’s real situation.

That’s why, according to the regime’s Planning and Budget Organization, which was set up in August of this year, by the former government, it is said that in the event of a stalemate in negotiations and continued sanctions, the dollar rate will peak to 100,000 tomans by the end of the next government in 2025 and increase to 284,000 tomans in 2027.

According to the official report, even if sanctions are lifted, the dollar rate will still rise above 55,000 tomans in 2027, and the average annual inflation rate in the next six years will be 28 percent, with sanctions continuing it will be close to 54 percent.

Despite wasting the people’s and country’s resources on useless goals like the missile and nuclear project and building up other country’s while the people are in severe need, the regime is compensating its losses from the people’s pockets as its media warned about the consequences of such decisions if they continue in long terms.

“The government is pressing the people’s necks. According to the pressure that is now on the wage-earning class and is cutting off their breaths, it seems that the government should act a little more careful.” (State-run daily Jahan-e-Sanat)

It is not unreasonable that Hosseini Hamedani on Alborz TV network said: “The situation of our society is now poisoned in some issues, cultural work does not work, it should be acted quickly.”

Now even with the empty promises of the regime’s new president Ebrahim Raisi, everything is getting worse.

“The truth is that in these 70 days of the establishment of the 13th government, except for unsupported and impractical promises, no opening has been created even in the economic and market environment. The price of the currency, coins, gold, iron, etc. continues to rise and even the most urgent need of our people, bread, has not the same price as in the twelfth government. Dairy cheapness is more like humor.” (State-run daily Mardom Salary)

The conclusion is not complicated, the regime will face a super crisis followed by the people’s protests, which this time are not erasable.

Latest news

The World Must Acknowledge the Iranian People’s Right to Self-defense

Victor Hugo once said: “When dictatorship is a fact, revolution becomes a right.” Throughout history, this has been the...

Iran: 60% Of Population Is Poor

The livelihood baskets of the Iranian people are shrinking dramatically. This, in turn, has introduced new concerns to protect...

The implications of EU’s terrorist designation of the Revolutionary Guards (IRGC)

The European Parliament called on January 18 for the European Union to list Iran's Revolutionary Guards (IRGC) as a...

Iran’s Regime Is Hiding Human Rights Violations In Its Prisons

With more than four months into Iran’s latest round of nationwide uprisings, the brutality of the Iranian regime’s security...

How Internet Censorship Is Damaging Iran’s Economy

While in the last four months, internet access in Iran has been cut off or severely limited, the regime’s...

Iran Regime’s Upcoming Budget Bill Will Lead To More Protests

On January 12, the Iranian regime’s president Ebrahim Raisi handed over the country’s budget bill to the parliament.  According...

Must read

UN criticises Iran for excluding women candidates

AFP: Several UN experts on Wednesday criticised Iran's decision...

You might also likeRELATED
Recommended to you