Iran has announced a shift to direct monthly payments of approximately $7 for citizens as protests escalate amid a severe economic crisis.
In a significant policy shift, the Iranian government has decided to replace its long-standing import subsidies with direct monthly payments to citizens, aimed at alleviating economic pressures. The announcement, made by government spokesperson Fatemeh Mohajerani on Iranian State TV, comes as protests intensify across the nation.
The new measure will provide eligible Iranians with one million Iranian tomans, equivalent to about $7, intended to help preserve household purchasing power, control inflation, and ensure food security. This initiative marks a departure from previous economic strategies that relied heavily on subsidizing imports.
Under the proposed plan, approximately $10 billion previously allocated for import subsidies will now be redirected to support the public directly. The labor minister indicated that around 80 million people, representing the majority of Iran’s population, are expected to receive these payments in the form of credit for purchasing goods.
The decision to implement these payments comes at a time when Iran’s economy is grappling with severe challenges, including international sanctions and declining oil revenues. The Iranian currency has lost more than half of its value against the U.S. dollar, exacerbating the financial strain on citizens.
According to the Statistical Center of Iran, a state-run agency, the average annual inflation rate reached 42.2% in December, further highlighting the economic turmoil facing the country. The payments were announced amidst widespread protests that have involved merchants, traders, and university students, leading to the shutdown of marketplaces and rallies on campuses.
The protests have spread to at least 78 cities and 222 locations, as reported by the U.S.-based Human Rights Activists in Iran (HRAI). Demonstrators are calling for an end to the regime led by the 86-year-old Supreme Leader Ali Khamenei. HRAI has reported that the regime’s security forces have killed at least 20 individuals, including three children, and arrested around 990 people, with more than 40 of those detained being minors.
As the situation continues to evolve, the Iranian government faces mounting pressure from both its citizens and the international community. The effectiveness of the new payment scheme in quelling unrest remains to be seen, as many citizens express skepticism about the government’s ability to address the underlying economic issues.
According to The New York Times, the Iranian government’s shift to direct payments reflects a recognition of the urgent need to respond to the growing discontent among the populace.