Hussein Selahvarzi, the former head of Iran’s regime Chamber of Commerce, revealed corruption in foreign exchange and the government’s flawed economic policies in an interview with the state-run media outlet Shafaqna on February 3. He believes that price controls and misguided Central Bank policies have not only created rent-seeking opportunities and corruption but have also had widespread negative effects on exports and the country’s trade balance.
Selahvarzi, referring to the recent foreign exchange crisis, stated: “In recent years, due to the establishment of unrealistic exchange rates, many have sought to gain the largest share of foreign currency resources. This unhealthy competition, especially under political pressure on the Central Bank, has led to increased corruption in foreign exchange and inefficiency in the economy.”
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Selahvarzi further added: “One of the serious consequences of these flawed policies is the outflow of foreign currency from the country without it returning to the economic cycle. Last year, when the country faced a trade deficit of 16 to 17 billion dollars, approximately 9 billion dollars from export revenues did not return to the country, which is a clear example of foreign exchange corruption. This not only depleted the country’s foreign currency resources but also fueled currency market turmoil.”
Flawed economic policies have prevented the realization of 8% growth
Selahvarzi, criticizing the economic policymaking process, added: “Over the past four decades, seven development plans have been drafted, all targeting 8% economic growth. However, in practice, due to the lack of structural reforms, widespread foreign exchange corruption, and weaknesses in macroeconomic policies, we have never come close to this goal.”
He further stated: “The only way to reduce corruption and prevent the wastage of foreign exchange resources is to ensure transparency in currency policies, eliminate price controls, and grant the Central Bank independence from political pressures. Otherwise, foreign exchange and economic crises will persist. This situation could inflict irreparable damage on the country’s economy, and any delay in reforms will lead to even heavier consequences.”
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However, the current reality indicates that within the corrupt political structure imposed by the Iranian regime, talk of reforms is nothing more than an illusion.
Foreign exchange corruption and the government’s flawed policies have had devastating effects on people’s livelihoods. The depletion of the country’s foreign currency reserves has led to an increase in exchange rates, which directly exacerbates inflation and price hikes. Rising production costs, declining purchasing power, and the depreciation of the national currency are among the destructive consequences affecting society. This situation has not only plunged low-income groups into a livelihood crisis but has also destabilized the business environment.
