Hossein Salahvarzi, a former official, discussed the systemic corruption under Iran’s regime, focusing on flawed economic policies and unrealistic exchange rates that stifle economic growth. He revealed that nearly $9 billion in exported foreign exchange did not return to the economy, exacerbating the trade deficit. Salahvarzi warned that without significant reforms, such corruption would persist, causing irreversible harm to the economy.
In an interview with state media, Hossein Salahvarzi, former head of Iran’s Chamber of Commerce, shed light on the mechanisms of corruption in Iran under the current regime. He highlighted how foreign exchange corruption thrives due to flawed economic policies and the government’s manipulation of exchange rates, which has distorted competitive practices and fueled rent-seeking behavior. Salahvarzi emphasized that these corrupt practices are deeply entrenched and systemic, leading to significant economic inefficiencies.
Salahvarzi specifically criticized the government’s insistence on unrealistic exchange rates, which has exacerbated corruption. He stated, “In recent years, the government’s insistence on setting unrealistic exchange rates has led many to compete for the largest share of foreign exchange resources.” This manipulation has created unhealthy competition that, coupled with political meddling in the Central Bank, intensifies corruption in foreign exchange.
One alarming revelation from his interview was the nearly $9 billion in foreign exchange from exports that failed to return to the Iranian economy last year, despite the country facing a significant trade deficit. He pointed out that, “Last year, while Iran faced a trade deficit of $16 to $17 billion, nearly $9 billion in foreign exchange from exports failed to return to the economy.” This systemic corruption further destabilizes the foreign exchange market and drains national resources.
Additionally, Salahvarzi remarked on Iran’s prolonged struggles to achieve sustainable economic growth, citing ineffective macroeconomic policies and corruption as major barriers. He emphasized that without essential reforms, including transparency in foreign exchange practices and an independent Central Bank, corruption will persist. “Failure to act will cause irreparable damage to Iran’s economy,” Salahvarzi warned, stressing the urgent need for reform.
Despite his suggestions for reform, the ingrained corruption within Iran’s political and economic system appears insurmountable. Salahvarzi likens the notion of reform under the current regime to trying to “resuscitate a lifeless body.” The systemic corruption has escalated to a level that poses an existential threat to the country’s economy, necessitating profound systemic change for a viable future.
The ramifications of foreign exchange corruption extend well beyond mere economic metrics; they severely affect the daily lives of ordinary Iranians. Inflation and increased costs resulting from the depletion of foreign reserves have devastated purchasing power, pushing more citizens into financial hardship. Low-income groups are particularly vulnerable, facing an escalating livelihood crisis amid a backdrop of economic instability.
Corruption in Iran has become a destructive force affecting economic performance and the daily lives of its citizens. Various factors contribute to this situation, including mismanagement of foreign exchange resources, government interference in economic policies, and lack of structural reforms. Recent statements by key economic figures, such as Hossein Salahvarzi, provide insights into how these corrupt practices have been allowed to flourish under the regime, leading to systemic challenges facing the Iranian economy.
Corruption within Iran’s economic framework stems from systemic issues like unrealistic exchange rates, lack of transparency, and severe mismanagement. Despite attempts to highlight and address these problems, the entrenched nature of this corruption undermines any meaningful reform efforts. Without radical changes, including dismantling the corrupt structures of governance, Iran’s economic struggles are likely to continue, adversely affecting the livelihoods of its citizens.
Original Source: irannewsupdate.com
