عربي English Türkçe اردو فارسى
Logo
Latest News
World

Iranians Reel from Economic Mafia, Currency Collapse

Sellers wearing masks in an Iranian fruit market (File photo: Reuters)
Sellers wearing masks in an Iranian fruit market (File photo: Reuters)
TT
20
TT

Iranians Reel from Economic Mafia, Currency Collapse

Sellers wearing masks in an Iranian fruit market (File photo: Reuters)
Sellers wearing masks in an Iranian fruit market (File photo: Reuters)

A soaring food inflation and growing prices of real estate and home appliances has struck Iran, raising fear among the people along with their concern on the coronavirus pandemic.

Purchasing power saw a significant decline as the prices of fruits and vegetables continued to increase by 30 to 40 percent.

Economic sources said inflation is caused mainly by the collapse of the currency, the impact of the coronavirus, lack of state monitoring, and the presence of an “economic mafia.”

However, the sources believe that western sanctions imposed on the country are directly to be blamed for Iran’s economic hardship.

Iranians have called on the government to take effective measures to solve the deteriorating economic crisis, which has forced them to limit their purchases to essentials goods.

Economic reports showed that the prices of household appliances rose 30 to 60 percent, causing a decline in sales, at a time when smuggled foreign goods saw a 100 percent increase.

The Statistics Center reported that 30 percent of Iranian families lost the ability to buy home appliances and resort to the flea market for their needs.

In addition, the housing market recorded a strong decline. Media reports indicated that some Iranians, who have failed to pay their mortgages or rent, are now living in tents.

The value of the Iranian rial also continued to drop against the dollar and euro.

Social media activists said the sudden imbalance in the market, deteriorating living conditions, and rising prices have increased suicide rates.

Recently, an employee of the Azadegan oil field in the southwest of the country, committed suicide, sparking widespread controversy and prompting the oil minister to open an investigation.

Earlier, the Iranian parliament summoned Minister of Economy Farhad Dejpasand for questioning on the economic situation. Lawmakers issued a constitutional warning to Iranian President Hassan Rouhani demanding measures to stop the increase in prices.

Donyae Eqtesad newspaper reported that Rouhani asked the Undersecretary of the Industry Ministry to ensure close supervision and urgent intervention to regulate and control prices of household appliances.

Last week, the President formed a taskforce that includes the ministers of economy and transportation, and the governor of the Central Bank. Rouhani tasked them along with his first deputy, Ezhag Jahangiri, with searching for solutions to the fast rise in home prices.

Economic observers believe that Rouhani should have acted even before the re-imposition of US sanctions on Iran to regulate the housing market.

Most Viewed

 
World

Danish Leader Tells the US ‘You Cannot Annex Another Country’ as She Visits Greenland

Denmark's Prime Minister Mette Frederiksen and Greenland's acting head of government Mute Bourup Egede attend a press conference aboard the Danish Navy inspection vessel Vaedderen, in the waters around Nuuk, Greenland, April 3, 2025. (Reuters)
Denmark's Prime Minister Mette Frederiksen and Greenland's acting head of government Mute Bourup Egede attend a press conference aboard the Danish Navy inspection vessel Vaedderen, in the waters around Nuuk, Greenland, April 3, 2025. (Reuters)
TT
20
TT

Danish Leader Tells the US ‘You Cannot Annex Another Country’ as She Visits Greenland

Denmark's Prime Minister Mette Frederiksen and Greenland's acting head of government Mute Bourup Egede attend a press conference aboard the Danish Navy inspection vessel Vaedderen, in the waters around Nuuk, Greenland, April 3, 2025. (Reuters)
Denmark's Prime Minister Mette Frederiksen and Greenland's acting head of government Mute Bourup Egede attend a press conference aboard the Danish Navy inspection vessel Vaedderen, in the waters around Nuuk, Greenland, April 3, 2025. (Reuters)

Denmark's prime minister has told the US during a visit to Greenland that “you cannot annex another country,” even with the argument that international security is at stake.

US Secretary of State Marco Rubio, meanwhile, said on Friday that Washington will respect Greenland's self-determination and Copenhagen “should focus on the fact that the Greenlanders don’t want to be a part of Denmark.”

Danish Prime Minister Mette Frederiksen was wrapping up a three-day visit to the strategically critical Arctic island on Friday as US President Donald Trump seeks control of Greenland. He argues that Greenland, a semiautonomous territory belonging to the Kingdom of Denmark, is critical to US security.

A week ago, Vice President JD Vance visited a remote US military base in Greenland and accused Denmark of underinvesting in the territory.

Frederiksen pushed back against the US criticism as she spoke on Thursday alongside Greenland's incoming and outgoing leaders on board a Danish naval ship. She argued that Denmark, a NATO ally, has been a reliable friend.

Speaking in English, she said that “if we let ourselves be divided as allies, then we do our foes a favor. And I will do everything that I can to prevent that from happening.”

“When you ask our businesses to invest in the US, they do. When you ask us to spend more on our defense, we do; and when you ask of us to strengthen security in the Arctic, we are on the same page,” she said.

“But when you demand to take over a part of the Kingdom of Denmark’s territory, when we are met by pressure and by threats from our closest ally, what are we to believe in about the country that we have admired for so many years?”

“This is about the world order that we have built together across the Atlantic over generations: you cannot annex another country, not even with an argument about international security,” Frederiksen said.

The Danish leader said that, if the US wants to strengthen security in the Arctic, “let us do so together.”

Political parties in Greenland, which has been leaning toward eventual independence from Denmark for years, last week agreed to form a broad-based new coalition government in the face of Trump's designs on the territory. Those have angered many in Greenland and Denmark.

In an interview with Newsmax on Thursday, Vance repeated the accusation that Denmark has “really underinvested in the infrastructure and security of Greenland.”

He said Trump's point is that “this matters to our security, this matters to our missile defense, and we're going to protect America's interests come hell or high water.”

Danish Foreign Minister Lars Løkke Rasmussen, who was attending a meeting in Brussels with his NATO counterparts, wrote on social network X that he had an “honest and direct” meeting Thursday with Rubio.

“I made it crystal clear that claims and statements about annexing Greenland are not only unacceptable and disrespectful,” Løkke Rasmussen wrote. “They amount to a violation of international law.”

Rubio told reporters in Brussels Friday that “no one's annexed anything.” He added that Vance has made clear that “he's going to respect the self-determination of Greenlanders.”

“Denmark should focus on the fact that the Greenlanders don’t want to be a part of Denmark," Rubio said.

“We didn’t give them that idea. They’ve been talking about that for a long time,” he said. "Whenever they make that decision, they’ll make that decision.”

“If they make that decision, then the United States would stand ready, potentially, to step in and say, okay, we can create a partnership with you," Rubio said, adding that "we’re not at that stage.”