Iran's government has unveiled a controversial plan to issue monthly coupons worth approximately £5 to millions of citizens, in a move widely seen as an attempt to quell widespread protests driven by a severe economic crisis.
A 'Preservation of Purchasing Power' or an Economic Gamble?
The scheme, announced by government spokesperson Fatameh Mohajerani, is aimed at offsetting the burden caused by the elimination of a heavily subsidised exchange rate used for importing essential goods. Mohajerani stated the plan's goal is to 'preserve households’ purchasing power, control inflation and ensure food security.'
Labour minister Ahmad Maydari confirmed the aid would be distributed as coupons redeemable for basic commodities, not cash, in an effort to limit inflationary pressures. However, the modest sum is unlikely to ease the struggles of most Iranians, whose minimum monthly needs are estimated to cost upwards of £150.
In a stark admission, Mohajerani told reporters the policy could itself raise prices of some essential goods by 20 to 30 percent. The daily newspaper Setareh Sobh described the move as an 'economic gamble,' noting that similar efforts in the past failed to stabilise prices or restore public trust.
Protests Spread Amid Violent Crackdown
The economic measures come against a backdrop of significant civil unrest. Protests, now in their tenth day, have spread to 107 cities across Iran. They were initially triggered by merchants at Tehran's Grand Bazaar, who shut their shops in response to the collapsing Iranian rial and surging inflation.
The state response has been severe. Since demonstrations began on December 28, at least 19 protesters have been confirmed killed, including three teenagers, and a further 990 people have been arrested. Authorities have used gunfire, mass detentions, and intimidation, framing the protests as a foreign plot.
Footage shared on social media appears to show security forces in the town of Koushk, near Isfahan, deploying tear gas and crowd-control munitions against demonstrators on Sunday night, with projectiles passing dangerously close to people. Metro cannot independently verify these videos.
Decades of Devaluation and Deep-Seated Grievances
The current crisis is rooted in long-term economic mismanagement. An editorial in Setareh Sobh noted that Iran's currency has lost roughly 20,000 percent of its value since the 1979 revolution. It blamed this devaluation on 'policies such as hostage-taking, hostility toward the West and Israel, mismanagement and the exclusion of experts.'
Chief Justice Gholamhossein Mohseni Ejei instructed prosecutors to 'act with resolve against the rioters' and show 'no leniency,' while claiming the state distinguishes between peaceful protesters and rioters.
This is the latest in a series of nationwide protests in recent years, though they have not yet reached the scale of the 2022 demonstrations following the death of Mahsa Jina Amini. The unrest underscores the deepening chasm between Iran's clerical regime and its citizens, who face a daily battle against poverty and repression.
