While demonstrators chant against the entire system, the government of President Masoud Pezeshkian has focused its response on reshuffling economic managers and pressing ahead with long-delayed currency reforms, betting that technical fixes can still defuse a crisis that has increasingly become political.<\/p>\n
The renewed unrest was triggered by a sharp bout of currency volatility that briefly pushed the U.S. dollar to around 1.45 million rials on the open market, intensifying already high inflation and accelerating the erosion of purchasing power.<\/p>\n
\u201cProtesting the dollar is protesting instability; protesting a life that cannot be planned,\u201d wrote journalist Mustafa Danandeh in the daily Ettelaat. \u201cPeople who do not know whether six months from now their rent will double, medicine will be available, or their job will survive.\u201d<\/p>\n
A new old face<\/p>\n
In response, Pezeshkian reshuffled the leadership of the Central Bank of Iran, reappointing Abdolnaser Hemmati and reviving a controversial push toward a single exchange rate\u2014an idea long advocated by economists but repeatedly stalled by politics, sanctions and entrenched interests.<\/p>\n
Hemmati, a prominent centrist figure, had been forced out less than seven months into his tenure as economy minister after parliament impeached him over exchange-rate volatility.<\/p>\n
His return\u2014this time to a post that does not require parliamentary approval\u2014has infuriated hardline lawmakers and highlighted widening rifts within the political elite.<\/p>\n
\u201cThis explicitly ignores parliament\u2019s vote and shows disregard for the will of representatives,\u201d said Zeynab Gheisari, an ultra-hardline lawmaker from Tehran. Another hardline legislator, Amir-Hossein Sabeti, said the move demonstrated the government\u2019s \u201cdisregard for the people and the country\u2019s economy.\u201d<\/p>\n
In his first public remarks after the appointment, Hemmati laid out familiar priorities: controlling inflation, managing the foreign exchange market and tightening oversight of banks.<\/p>\n
It\u2019s the economy\u2014or is it?<\/p>\n
The reform effort centers on dismantling Iran\u2019s multi-rate currency regime, a system dating back to the Iran\u2013Iraq war of the 1980s, when preferential exchange rates were introduced to subsidize essential imports. Over time, the widening gap between official and market rates turned the system into a major source of rent-seeking, corruption and uncertainty.<\/p>\n
As the business news outlet Tejarat News noted, the policy \u201cfailed to provide sustainable support for domestic producers and created severe uncertainty for investment and production planning.\u201d<\/p>\n
The Entekhab news site cautioned that in an economy burdened by sanctions, fiscal shortfalls and political distrust, inflationary expectations tend to regenerate quickly once short-term interventions fade.<\/p>\n
On Thursday, the president announced the immediate elimination of the subsidized exchange rate of 285,000 rials per dollar for basic goods and animal feed imports, saying the subsidy would instead be transferred directly to consumers to eliminate \u201crent, bribery and corruption.\u201d<\/p>\n
In unusually blunt remarks, Pezeshkian acknowledged that public anger was directed at the state itself. Dissatisfaction, he said, was the government\u2019s responsibility, adding that \u201cthere is no need to look for America to blame.\u201d<\/p>\n
Many protesters appear keenly aware that Pezeshkian\u2019s authority is tightly constrained by entrenched power centers, a reality reflected in slogans that target the theocratic system itself and its supreme leader rather than the exchange rate.<\/p>\n","protected":false},"excerpt":{"rendered":"While demonstrators chant against the entire system, the government of President Masoud Pezeshkian has focused its response on…\n","protected":false},"author":2,"featured_media":222154,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,87,98127,98124,98123,20889,98125,59417,92,98122,98126,46,47,81563],"class_list":["post-222153","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-iran","tag-iran-and-china","tag-iran-covid","tag-iran-economy","tag-iran-government","tag-iran-media-iran-and-the-united-states","tag-iran-news","tag-iran-nuclear","tag-iran-politics","tag-iran-us","tag-israel","tag-middle-east","tag-us-sanctions"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/222153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=222153"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/222153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/222154"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=222153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=222153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=222153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}