Nima, a cryptocurrency trader, thought he had figured out how to survive Iran’s unpredictable economy. His foreign currency income shielded him from the unstable rial and runaway inflation, allowing him to save and make the occasional impulse buy.
But months of conflict with the US have taken their toll on an already battered economy weakened by decades of sanctions and mismanagement and pushed most Iranians, even those like Nima, on to the ropes.
“I’m in survival mode,” said the 33-year-old from western Iran. He said he is paying three times what he was for groceries, leaving little money left over for other purchases.
Food prices in Iran have risen consistently in recent years, driven by a weakening currency and rising inflation. The war and the ensuing US naval blockade have only made things worse, squeezing already dwindling oil revenue and affecting imports.
The prices of some staples have grown explosively in the past year, according to state data. Cooking oil, for instance, is up about 400 per cent to $1.78 for 810g, while meat costs up to $15 a kilo.
On top of the huge annual inflation of over 80 per cent, massive job losses have followed since the conflict began. According to the Donya-e Eqtesad newspaper, unemployment spiked to a four-year high of 9.1 per cent by early June, up from 7.5 per cent a quarter earlier.
Nima now has “to choose between the essentials and everything else,” he said, foregoing “luxuries” such as buying a new phone, eating out or even buying books.
Exacerbating the situation was an almost three-month-long state-imposed internet blackout in January that threatened the livelihoods of many such as Nima, who was forced to rely on savings and teaching English to get by.
The blackout followed protests in December sparked by the already deteriorating living conditions, prompting a brutal crackdown that left at least 7,000 people dead, according to human rights monitors outside the country. Other reports put the death toll many times higher.
“Every tomorrow has been worse than the day before. If you can’t save, can’t buy what you want and don’t have a predictable future, then what’s the point of working any more?” said Nima.
But the situation for those being paid in the local currency is even more “grim”, according to Reza, a 38-year-old working at Tehran’s Grand Bazaar. “Inflation keeps speeding up, and our [rial] income is just standing there … and you earn in rials but actually spend in dollars,” he explained.
The Iranian rial has sunk to almost 1.88 million against the US dollar, compared with 1.65 million before the conflict began. That economic pressure is coming to a head with a US-Iran framework meant to provide a window for negotiating a broader settlement due to expire on Monday.
No Future
Reza counts himself lucky to own his apartment and not be the only breadwinner at home. Friends and co-workers have to work at least two jobs to make ends meet, he says.
His older brother, he added, works in a warehouse until evening and then in a restaurant till past midnight “just to afford food and rent” for a family of four.
Reza has also given up on anything “non-essential”, just saving what little he can. “No eating out, travelling or buying a phone. And if you have to buy something, you can only [do so] in instalments.”
Some Iranians are even giving up on vital treatments due to high medical costs, according to Samira, a 27-year-old medical practitioner from Tehran. “It’s as if dying makes more financial sense than continuing an expensive treatment. It’s very sad,” she said.
In interviews with The National, Iranians across the country expressed scepticism that the economy and their livelihoods would improve. Most saw moving abroad as a desirable, albeit unaffordable solution.
Kamran, a 32-year-old from southern Iran, has wanted to leave the country for years as he sees “no future to stay for”. But raising enough money to try has proved impossible.
His main job is gathering virtual currency in the popular online game World of Warcraft and selling it to other players. He says that keeps him above the monthly minimum wage, which is about 220 million rials, or $117.
It is a risky job, however. He can be banned for in-game currency manipulation if found, wiping out months of investment. He had to move back in with his family in southern Iran because of rising living costs in the capital, with his current income covering only his share of food and bills.
Freelance tech worker Majid thinks he can survive the deteriorating economy, but he has no optimism for the future. “I meant to leave [Iran], but my wife couldn’t bear leaving her family. But [soon] I think we’ll have to. This isn’t life, to worry every day if you can feed your family,” he explained.
Living in northern Iran, he said he has recently made ends meet by doing a mix of odd jobs such as working at a car wash and driving a cab when available projects are scarce.
“This pressure is unfair. It feels like everyone’s on the verge of breaking down,” Majid said.
Nima, Samira, Kamran and Majid used pseudonyms for security reasons.
