In August 2025, Iran witnessed a dramatic depreciation of its national currency, with the US dollar surpassing 100,000 tomans, signaling a worsening financial crisis for ordinary citizens. Official data revealed that annual inflation had climbed to 42.4%, severely impacting household budgets and eroding purchasing power across the country. For many families, this translates into mounting difficulties affording basic necessities, as savings dwindle and living costs surge.\n\nThis economic downturn is not accidental but stems from structural decisions made by the ruling authorities. While the population grapples with hyperinflation and a devalued currency, significant financial resources continue to be allocated toward external actors aligned with Tehran’s geopolitical agenda. Billions of dollars are reportedly funneled to support allied groups abroad, diverting funds from domestic needs and intensifying public discontent.\n\nEconomic indicators from official Iranian sources highlight the severity of the situation. On August 29, the dollar reached over 103,000 tomans, driven by investor anxiety following the reactivation of international sanctions under the nuclear deal’s snapback provision. The Statistical Center of Iran reported that inflation for the month of Mordad (ending August 22) stood at 42.4%, meaning consumers paid nearly half again as much for the same goods compared to the previous year. Food prices were especially volatile, rising 3.9% within a single month, placing additional strain on low- and middle-income households.\n\nInternal assessments suggest even grimmer prospects if sanctions tighten further. A leaked analysis from the Tehran Chamber of Commerce projected inflation could jump to 90%, the dollar could climb to 165,000 tomans, GDP might contract by 3%, and unemployment could reach 14% under full sanction reimposition. These forecasts underscore the fragility of the current economic framework.\n\nOne sector particularly affected by policy mismanagement is agriculture. Despite claims of addressing food security, the government imported 836,000 tons of rice—worth $904 million—between March and August 2025, citing drought conditions. This influx has undercut local farmers, especially in Gilan and Mazandaran, where domestic production cannot compete with cheaper imported alternatives. Critics argue this strategy benefits well-connected networks, including entities tied to the Islamic Revolutionary Guard Corps (IRGC), which exploit preferential exchange rates to import goods at low cost and sell them domestically at inflated prices.\n\nThe underlying driver of this imbalance appears to be a strategic preference for ideological objectives over citizen welfare. State-affiliated media acknowledged a fiscal shortfall of 800 trillion tomans, forcing a choice between supporting citizens or sustaining foreign alliances. Measures such as subsidy cuts and new taxation effectively shift the burden onto the general population, financing operations abroad while domestic conditions deteriorate.\n\nPresident Masoud Pezeshkian’s administration has limited influence over these dynamics. Real decision-making power resides with Supreme Leader Ali Khamenei and institutions under his control, including Setad Ejraiye Farmane Emam, Bonyad Mostazafan, Astan Quds Razavi, and the IRGC’s Khatam al-Anbiya Construction Headquarters. Together, these organizations manage an estimated 60% of Iran’s economy, operating with minimal transparency and directing resources toward external priorities.\n\nThe combination of currency collapse, soaring prices, institutional corruption, and perceived neglect of public welfare has created widespread frustration. Observers warn that continued disregard for economic justice may fuel further social unrest, as citizens face increasing hardship with diminishing hope for relief.\n— news from National Council of Resistance of Iran – NCRI\n\n— News Original —\nIran’s Regime is Fueling Foreign Proxies While the People Face Economic Collapse\n\nThree-minute read n nAs the US dollar breached the staggering 100,000-toman mark in August 2025, the Iranian people were hit with another grim milestone: official statistics confirmed that year-on-year inflation had soared past 42%. For millions of households, these are not abstract figures; they represent erased life savings, empty dinner tables, and a future sacrificed at the altar of the regime’s ideological priorities. n nThis catastrophic economic decline is not an unforeseen tragedy but the direct outcome of a deliberate policy choice in Tehran. While ordinary citizens are crushed by a collapsing currency and hyperinflation, the regime continues to systematically plunder the nation’s wealth. Billions of dollars are diverted to enrich a corrupt elite and fund a sprawling network of foreign proxies, creating an explosive social environment where a restive population is being pushed to its breaking point. n nThe Anatomy of a Meltdown n nThe latest economic indicators, drawn from the regime’s own official sources, paint a bleak picture of an economy in freefall. On August 29, the dollar surged to above 103,000 tomans, a spike directly attributed to market fears over the activation of the nuclear deal’s “snapback mechanism” for sanctions. n nSimultaneously, the Statistical Center of Iran released its report for the month of Mordad (ending August 22), confirming that the point-to-point inflation rate had reached 42.4%. The data revealed that households were forced to spend 42.4% more on the same basket of goods and services compared to the previous year. The most severe price hikes were in the “food, beverages, and tobacco” category, which saw a punishing 3.9% increase in a single month, further eroding the purchasing power of already struggling families. n nThe regime’s own insiders are aware of the impending disaster. A report from the Tehran Chamber of Commerce—which officials later attempted to deny after its public release—warned of a nightmare scenario should international sanctions be fully reimposed. Their forecast projected inflation skyrocketing to 90%, the dollar hitting 165,000 tomans, economic growth plunging to negative three percent, and the unemployment rate climbing to a devastating 14%. n nA Case Study in State-Sponsored Plunder n nThe regime’s economic priorities are starkly illustrated by its handling of the agricultural sector. While claiming to address food security, its policies actively dismantle domestic production to benefit a corrupt few. According to the regime’s customs chief, Farud Asgari, in the first five months of the Iranian year (March-August 2025), the government authorized the import of 836,000 tons of rice, valued at $904 million, using “drought” as a pretext. n nThis flood of imports has been catastrophic for Iran’s own rice farmers, particularly in the northern provinces of Gilan and Mazandaran. Unable to compete with subsidized foreign rice, local producers have seen their products pile up in warehouses and their livelihoods destroyed. The policy is not about feeding the population; it is a textbook case of a rent-seeking scheme designed to enrich “mafia-like gangs.” These groups, often with deep connections to powerful institutions like the Islamic Revolutionary Guard Corps (IRGC), exploit their access to preferential currency rates to import goods cheaply and sell them on the domestic market at exorbitant prices, reaping massive profits at the expense of both farmers and consumers. n nThe Ideological Core of the Crisis: Proxies Before People n nThe source of this economic devastation lies in a political doctrine that consistently places its expansionist ideology above the welfare of the Iranian people. In a remarkably candid admission, the state-run Jahan-e Sanat newspaper recently framed the challenge for regime president Masoud Pezeshkian’s government as a choice between “the people and…” the regime’s network of foreign proxies. n nThe article acknowledged that with a staggering 800 trillion toman budget deficit, as cited by economist Ali Ghanbari, the state can no longer afford to fund both. The regime’s solution has been to cut subsidies for millions of families and impose a wide array of new taxes, effectively forcing the impoverished populace to finance groups like Hezbollah and Hamas. n nHowever, the notion that Pezeshkian has any real say in this matter is a fallacy. Like his predecessors, he is merely a “functionary,” powerless to alter the regime’s strategic direction. The real authority rests with Supreme Leader Ali Khamenei and the IRGC. As economists within Iran have repeatedly pointed out, approximately 60% of the nation’s economy is controlled by four parastatal behemoths—Setad Ejraiye Farmane Emam (Headquarters for Executing the Order of the Imam), Bonyad Mostazafan (Foundation of the Oppressed), Astan Quds Razavi, and the IRGC’s Khatam al-Anbiya Construction Headquarters—all operating under Khamenei’s direct supervision. These entities function as a shadow government, siphoning off national wealth to fund the regime’s foreign legionaries, far from any public or governmental oversight. n nA Pressure Cooker Reaching its Limit n nThe convergence of a collapsing currency, crippling inflation, systemic corruption, and a clear policy of prioritizing foreign militias over its own citizens has created an untenable situation. The regime is not just mismanaging the economy; it is actively waging an economic war on its own people. By demonstrating such blatant disregard for their survival and dignity, Tehran is fueling the same rage that has ignited multiple nationwide uprisings in recent years. The question is no longer if the Iranian people will rise again, but when, as the regime’s calculated choices leave them with nothing left to lose.
