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Iranian economy about to collapse as key banks go bankrupt

Iranian economy on the verge of collapse

Thousands of Iranian depositors have recently sought to recover their funds from key national banks. This comes as the ghost of bankruptcy is prevalent in all banks of the eighty-million Shiite country.  

According to western reports, this crisis will exacerbate once the new US economic sanctions on the Mullah's regime are put into effect. 

Western sanctions

Three days ago, US Senate overwhelmingly passed a bill that imposes tough and additional sanctions against Iran along with Russia and North Korea.

Such sanctions are the newest among a series of tough sanctions against Tehran for sponsoring terrorism worldwide and destabilizing the Middle East and Arab Region. 

On July 1st, a ban went into effect that prohibits the 27- members European Union from purchasing Iranian oil or insuring oil tankers that carry it. 

Earlier, Washington put sanctions on foreign countries that buy Iranian oil. 

Bankrupt financial institutions 

Recently, Iranian police have brutally attacked Iranian depositors who recovered their funds from Tehran-based Samen Alhojaj financial institution.

Iranian news agency reported that the multi-branched institution has closed branches and gone bankrupt. 

Samen Alhojaj administration issued a statement to deny the reports, but in vain.  

other key institutions failed to return investors' funds.

Two-digit inflation 

Spiraling inflation is currently felt by ordinary Iranians like never before.

Due to the western sanctions, Iranian market has been moaning under disrupted supply chains and higher operating costs.

In late June, Iran's Central Bank put inflation in the country at 10.3%; a two-digit increase in the index.

The prices of basic commodities rose 30 percent and the price of vegetables galloped almost 100 percent. 

Iranian analysts confirmed budgets were being stretched thinner and thinner, and people were seeing the value of their savings quickly disappear.

Looming demise

The economic sanctions have dire consequences on the country's political arena.

According to observers, Iran's pressing economic crises along with its shaky internal front will reflect on its theocratic political regime.   

They added Tehran was experiencing the same sufferings the USSR lived before its demise in 1990.

As a result, the Trump administration is working to secure a peaceful transition of power in the ironclad theocracy.

In a recent testimony before the US Congress, Secretary of State Rex Tillerson has reasonably affirmed that his country should “work towards supporting those parties inside Iran that would lead to a peaceful transition of power.

Last Modified: Sunday، 30 July 2017 02:27 AM