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)
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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.



Denmark to Host Meeting on Arctic Security

Prime Minister of Denmark Mette Frederiksen walks on the day of the meeting of the Joint Expeditionary Force (JEF) in Oslo, Norway May 9, 2025. NTB/Terje Pedersen via REUTERS
Prime Minister of Denmark Mette Frederiksen walks on the day of the meeting of the Joint Expeditionary Force (JEF) in Oslo, Norway May 9, 2025. NTB/Terje Pedersen via REUTERS
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Denmark to Host Meeting on Arctic Security

Prime Minister of Denmark Mette Frederiksen walks on the day of the meeting of the Joint Expeditionary Force (JEF) in Oslo, Norway May 9, 2025. NTB/Terje Pedersen via REUTERS
Prime Minister of Denmark Mette Frederiksen walks on the day of the meeting of the Joint Expeditionary Force (JEF) in Oslo, Norway May 9, 2025. NTB/Terje Pedersen via REUTERS

The leaders of Denmark, Greenland, the Faroe Islands, Iceland and Norway will meet Monday for talks on Arctic security, Denmark's government said, as US President Donald Trump vies to gain control of Greenland.

Trump has repeatedly said the US needs the strategically-located resource-rich Arctic island for security reasons, and has refused to rule out the use of force to secure it.

Trump's comments have sparked concern in other Arctic regions as well, including Iceland and Norway's Svalbard archipelago.

The remarks have also angered Danish and Greenlandic leaders, who have insisted that the island will decide its own future and the US "will not get Greenland."

"Even though our countries meet in different parts of the world, it is natural that we, in this circle of countries, meet to discuss the current security situation in the Arctic and the North Atlantic," AFP quoted Danish Prime Minister Mette Frederiksen as saying in a statement issued on Sunday.

Monday's talks will be held in Torshavn, the capital of the Faroe Islands, and be attended by Frederiksen as well as Greenland's Prime Minister Jens-Frederik Nielsen, Iceland's Prime Minister Kristrun Frostadottir and Faroe Islands Prime Minister Aksel Johannesen.

Norway's Prime Minister Jonas Gahr Store will participate via video link.