Economic Hardships Diminish Holiday Spirit Ahead of Nowruz in Iran

As the Persian New Year approaches, Tehran’s markets face a dire decline in customers due to a plummeting currency and high inflation. Shops report catastrophic sales impacts, prompting the impeachment of Finance Minister Abdolnaser Hemmati. Many Iranians are forgoing traditional holiday purchases, exacerbated by fears of ongoing economic pain under renewed sanctions from the U.S.

In Tehran, shops and markets are experiencing a significant decline in customer traffic as the Persian New Year approaches, reflecting the troubling state of the Iranian economy. The plummeting currency and soaring double-digit inflation have sharply reduced holiday shopping, leading to parliamentary action that resulted in the impeachment of Finance Minister Abdolnaser Hemmati, who had been striving to manage the economic turmoil exacerbated by ongoing international sanctions.

At the Grand Bazaar, vendors report catastrophic business conditions. Mohsen, an underwear seller, lamented that sales are severely low, with many vendors indicating that their customers have lost purchasing power. The Iranian rial’s value has plummeted to over 920,000 to the US dollar on the parallel market, which is a stark increase from under 600,000 one year prior.

Hemmati had taken office with the expectation of addressing Iran’s deepening economic crisis. The reinstatement of US President Donald Trump’s “maximum pressure” policy has heightened fears among Iranians of impending hardships. Shopkeepers and consumers alike are expressing dissatisfaction, as illustrated by Mohsen’s account, which noted that some neighboring shops have already closed their doors.

Traditionally, Iranians prepare for the Nowruz celebrations by purchasing gifts, new clothing, and various items. However, inflation has severely impacted sales, with Majid, a toy storekeeper, explaining that a toy which cost 200,000 rials last year is now priced at more than double. The soaring currency rates have increased import costs, contributing to the inflated prices that make consumers hesitant to spend.

The Iranian statistics bureau reports an annual inflation rate of approximately 32 percent as of February, while the World Bank noted inflation rates as high as 44 percent in 2023. The minimum wage has been set at 111 million rials, equivalent to about $120, which is insufficient given the economic pressures.

Shoppers like Akram express dismay over the rising prices, as she left the Grand Bazaar without making any purchases. Reza Esmailian managed to buy only a single packet of dates, further illustrating the dire situation. Vendor Ali described his struggle to provide for his three children, emphasizing that the current economic climate has drastically curtailed holiday shopping for Nowruz.

The economic difficulties in Iran have significantly diminished consumer spending ahead of the Persian New Year, with many vendors experiencing a sharp decline in sales due to soaring inflation and currency devaluation. The impeachment of Finance Minister Abdolnaser Hemmati underscores the urgency of addressing the economic crisis. As long-standing traditions of gift-giving and celebration are threatened, the citizens’ purchasing power continues to wane under pressing economic conditions.

Original Source: www.france24.com