"Iran's currency has been registering new lows amid ongoing economic turmoil that is also reflected in a planned budget for next year that effectively shrinks public spending. Each United States dollar was priced at about 1.36 million rials in the open market on Wednesday in Tehran, its highest rate ever, before the Iranian currency slightly regained ground on Thursday, The embattled national currency has been rapidly declining over recent weeks as the US and its Western allies pile on their sanctions and diplomatic pressure,"
"The presented budget nominally grew by just over 5 percent compared with last year, but inflation currently stands at about 50 percent indicating that the government envisions lower spending while managing a so-called resistance economy as it faces a massive budget crunch yet again. But minimum wages are to be raised far below the inflation rate, too, at only 20 percent, meaning that Iranians are once more guaranteed to have far less spending power next year as the embattled national currency sinks."
Iran's currency reached record lows, trading around 1.36 million rials per US dollar before a slight recovery. The national currency has rapidly declined amid intensified US and Western sanctions and a looming regional security threat. The proposed budget nominally rises just over 5 percent while inflation hovers near 50 percent, implying significant real spending cuts. Minimum wages are set to increase by only 20 percent, far below inflation, eroding purchasing power. The budget projects a 62 percent rise in taxes as authorities seek to reduce dependence on oil revenue amid pressure on exports. Basic food prices are expected to climb as households grow poorer.
Read at www.aljazeera.com
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