Iran Economy NewsCapital Outflow Intensified in Iran

Capital Outflow Intensified in Iran

-

One of the current major crises in Iran’s economy is the capital outflow, which is implemented by the regime’s officials who are depositing huge amounts of wealth into foreign banks and private accounts. One way in which they transfer the currency they have received from the central bank abroad is under the pretext of importing basic goods. However, in practice, they do not import any goods in return, which has raised many skepticisms even among the regime’s experts.

On May 1, the state-run Etemad Online website quoted one of the regime’s economic experts in their publication, writing, “$20 billion was taken out of the country in 2018 in the name of importing goods, many of which did not return.”

According to unofficial statistics, more than $10 billion leaves the country annually. On May 1, the Jahan-e-Sanat newspaper cited the Central Bank in an article, stating that the outflow of capital from the country in 9 months in 2021 was “more than $10 billion”, which is double the amount compared to the same 9 months of 2020.

They added, “The outflow of capital in the third quarter of 2021 was accompanied by a growth of 96 percent compared to the same period in 2020. The increase of the outflow of capital from the country according to the government’s statistics, can be a warning signal for the situation of investment in the country.”

These are just the official statistics that are ringing the alarm bells. Unofficial statistics are painting a picture of a much worse situation.

In regards to the capital outflow over the past four years, the state-run daily Jahan-e Sanat wrote, “In fact, in a situation where the outflow of capital from the country has increased during the last four years and in 2020 for the second time the depreciation rate exceeded the investment rate, the economic situation for producers was such that in most seasons with increasing production costs and they faced a decline in consumer purchasing power.”

One example that has exposed the severity of this critical situation is the bankruptcy of small businesses. According to Jabbar Kouchaki Najad, a member of the regime’s parliament, “Many small production centers are in crisis and some workers have been laid off.”

It is clear that under this amount of pressure, it is impossible to form a real private sector, and what is left are so-called private businesses that are owned by the regime’s officials, which are operating to support the regime’s looting and thefts.

Discussing the regime’s pressure on the private sector, the Jahan-e-Sanat daily wrote in their April 29 publication, “The government has blamed the private sector and employers for the entire costs. Now we must see how it can continue this policy.”

Latest news

Iranian People’s Resistance Changed the Appeasement Policy

Soon after the new US government started its obligations in January 2021, hand in hand with the European governments...

Khamenei’s Disgraceful Campaign Against Piranshahr and Javanrud, Who Will Be the Loser?

On the 67th day of Iran’s revolution, the Iranian regime attempted to put a halt to the protests in...

Iran: Expensive Medicine, Cheap Human Life

A look at the equipment and weapons that the Iranian regime has been using against its people to suppress...

Who Is Abolqasem Salavati Iran Regime’s Killer Judge?

Last week, it was announced that the case of several people who were arrested during the Iranian People's uprising...

Iran Revolution Characteristics

More than two months have passed since the start of the latest round of protests in Iran against the...

Iran’s Regime Is Unable To Eradicate Protests

Totalitarian governments, whether be it a monarchy or a clerical regime, and their international supporters are pursuing the same...

Must read

Iran tells Arab states not to fall in WikiLeaks ‘trap’

AFP: Iran on Tuesday cast doubt on the authenticity...

EU’s Solana hands Iran world powers’ nuclear offer

Reuters: European Union foreign policy chief Javier Solana on...

You might also likeRELATED
Recommended to you