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| Mehdi Neimi |
Following the Iranian government’s decision to eliminate the 4,200-toman exchange rate for certain imported food products and the subsidy on flour, the prices of essential food items have skyrocketed. Protests against rising costs have erupted in various provinces.
Speaking to Voice of America, economist Mehdi Neimi stated that the government’s removal of the state exchange rate and subsidies was an untimely decision.
Criticizing the economic policies of Ebrahim Raisi’s government, Neimi noted that while there are capable economists within the administration, they have little influence over economic decisions.
“There are people in Raisi’s economic team whose primary field of expertise is economics. They have studied well and have a relatively good understanding of the economy. However, there are also those who have no knowledge of economics—for example, Mr. Mohsen Rezaei, a former commander of the IRGC,” Neimi said.
He considers the removal of the 4,200-toman exchange rate and subsidies to be poorly timed.
“Even economists critical of this decision argue that now was not the right time. The public is already under heavy economic pressure. When such an additional burden is suddenly placed on them, it leads to uprisings. As we have seen, protests have taken place in different regions, and it seems they will only increase,” he explained.
According to him, the capable economists in Raisi’s administration are forced to defend the government’s flawed policies, making themselves look ridiculous.
“I know that the economists in the cabinet are not well-informed about Iran’s sensitive political matters. They publicly defend the government’s policies, but if you speak to them privately, they will admit that they have no real knowledge of what is happening. I believe they are compelled to support these policies. In their university years and younger days, they were not at such a low intellectual level. But after entering the system, they started making absurd statements. Knowing them personally, I find it surprising. Those who don’t know them assume they are backward and ignorant. But that’s not the case—they academically understand economics, yet they are forced to speak this way,” Neimi added.
Link to the original interview in Turkish on the Azerbaijani section of Voice of America:
Mehdi Nəimi: İbrahim Rəisi hökümətinin subsidiyaları ləğv etməsi vaxtsız bir qərardır