According to the International Exhibition of Iranian Stone, Mehrdad Emadi stated about the country's currency situation: "Iran's situation is not the same and in most countries we have such a currency crisis and without exception, the currency crisis is rooted in the structure of the economy." When the economy does not produce enough goods and the need for imports increases, so the first step to reduce its negative effects is to stop the transfer of currency to semi-essential and non-essential goods by the central bank.

"We can't look for a solution in the central bank, we have to root for it," he said. I have always supported the free economic system, but at this point the distribution system should be based on the rationing of basic goods in order to reduce inflationary pressures in the economic system in the short term.

He continued: "Simultaneously with the rationing of basic goods, the government is seriously seeking to rebuild the tax system in order to increase tax revenue." Our tax system is one of the most corrupt tax evasion systems and is far worse than in countries like Egypt, Pakistan, Nicaragua and Brazil.

Private banks should be merged into three banks

The economist added: "So, along with the central bank's move to cut foreign currency to import unnecessary goods that are short-lived, the rest must be done by the government and, of course, in coordination with the central bank." In addition to this great pressure on foreign exchange resources, capital flight in Iran is still very serious, although not as much as eight months ago, when in some weeks we had $ 1 billion in illegal currency outflows. But this gray exit is done with the cooperation of private banks! It still exists, and the government can prevent it from allowing the central bank to merge into three private banks and close all of these small and large banks, ninety-nine percent of which were costly and corrupt.

The stock market bubble was created in collaboration with the government and the central bank

Explaining the volatile fluctuations in Iran's markets, Emadi said: "These fluctuations are the result of several bubbles, which, of course, have been experienced in other countries as well. For example, in Argentina, the currency bubble and the banking system together bankrupted the government." Now in economics we see three bubbles that come from the same power supply but are present in different parts of the economy. In the housing sector, the purchase of a house is not done for the purpose of receiving rent, but a protective shield against the devaluation of the rial and the escape from liquidity. Another bubble that has hurt the country is the stock market bubble, which has risen abnormally. How to increase the value of shares of companies that are at a loss? These conditions have been met with the approval, cooperation and, unfortunately, joint management of the Central Bank and the government to provide liquidity. Of course, this is a disaster for the Iranian economy, as two governing bodies do.

He added: "The third bubble is related to imported goods. Instead of being distributed among consumers, these goods are stored and stock exchanges are created on a seasonal and cross-sectional basis. . Therefore, reducing liquidity alone cannot be the solution, and at best giving two aspirin pills for a cancerous disease.

The root of economic cancer lies in closing the production line

The Economic Adviser of the European Union, referring to the importance and role of production in the country's economy, said: "The root of cancer in our economy is the closure of the production line, which was done intentionally." With the approval of the statistics, it can be proved that this program started two years after the end of the war so that the gap between the production line and deep import and self-sufficiency of production in the country would not occur, which was exactly the goal of market intermediaries that existed since Nasser al-Din Shah's reign. And there is no support for national production. It should be noted that when production increases, the supply of goods in the market reduces inflationary pressures and demand, and people do not shy away from liquidity. When people see that prices are not rising, they do not naturally move towards currency, gold or housing, and there is calm.

He continued: "Supporting production also increases employment and government tax revenues." Unfortunately, the severity of heroin addiction to money distribution is so great that anything can be done to increase liquidity, in which case the government will cause two harms; First, it reduces the value of people's liquidity and deposits, and this is an illegal and indirect tax, and second, it devalues ​​the country's national currency.

Emadi pointed out: "Shahr-e-Risheh is a structural problem in the country's economy, monopolies that have been formed not for production but around intermediate monopolies. Even car production has depended on imported parts. That is achieved through access to currency and imports, and we cannot do anything until we break this monopoly and make the economy competitive.

"Mr. Hemmati's promise in other countries was to issue dollar bills, and almost all countries that have survived colonial exploitation have used it, so for a country with a 3,000-year history of government," the economist said. Pulling here is not beautiful. In none of the countries did these dollar or euro certificates apply; Again, in the case of a cancer patient, this is like a commitment to change their weekly bedding, so it's a cover for Iran's economic cancer, and it's rooted in the uncontrolled and catastrophic spread of liquidity that has led to the bankruptcy of private banks in the hands of institutions. They lost from people's deposits and inappropriate investments, and with that loss, fifty-five percent of people's deposits went, and the central bank issued money to compensate for this damage.

He added: "By doing this, the people realized three types of losses; First, people's deposits are lost, second, inflation is rising week by week, and third, purchasing power is declining, and in no case have we had this dangerous combination.

He continued: "This issue has no basis. We need to have a euro reserve to show people that we can afford it whenever they want, and because we don't have it, it can be just one word. Like the words of one of the officials who said that the rial will become one of the strongest currencies in the region, in fact, these words are to restore hope to the people.

* ILNA