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Khamenei's euphoric joy over the economic crisis and devaluation of the Turkish currency

But some of the Iranian media affiliated with the government welcomed this news very much and published it widely. The question is, why is the Iranian regime happy and welcoming the devaluation of the Turkish lira, and how does it benefit from it?

To answer this question, one must pay attention to the political developments and the recent discord between the Iranian regime and Turkey over Azerbaijan and Syria, which have turned Khamenei's relationship with Erdogan into a hostile one, so much so that Iranian state television called, the Turkish economic crisis as the cost of Erdogan's ambitions.
Notably, despite Khamenei's direct involvement in Syria and sending troops and spending tens of billions of dollars to support Bashar Al-Assad, Iran has not gained any part in Syria's reconstruction market and is practically excluded from it. According to an official of the Trade Development Organization of Iran, while Turkey has got the largest share of the Syrian market with 38%, Iran's share of trade volume with Syria is only 3%, and this is very unpleasant for Khamenei.
It is also unpleasant for Iran to see the expansion of Turkish influence in Azerbaijan, Iran's northern neighbor, even though the majority of Azerbaijan population is Shiite and sees that as a threat to itself. Right now Azerbaijan considers Turkey an ally and supporter, and trade and military relations between the two countries are much stronger than its relations with Iran.
Iran by conducting a war game near the border with Azerbaijan in early October provoked the reaction of Azerbaijani President Ilham Aliyev and subsequent political rhetoric between Iranian and Azerbaijani officials.
But more important than the political issues between Iran and Turkey, we must pay attention to the catastrophic economic situation in Iran. By highlighting the economic crisis in Turkey, the Iranian regime wants to show that it is not only Iran that is suffering from the economic crisis, inflation, and devaluation of money, but the same problem in other countries exists!
Iranian regime in this way wants to justify the devaluation of Iranian money. But the Iranian regime does not point to some other economic facts and realities. The fact is that until three decades ago economy of Iran and Turkey were moving shoulder to shoulder and were at the same level. In 2005, the GDP of Iran and Turkey was almost equal in terms of purchasing power parity. But World Bank data show that in 2019, Iran was the 28th largest economy in the world, producing about $ 445 billion in goods and services. In the same year, Turkey ranked 19th in the world with $ 754 billion in goods and services. According to the Purchasing Power Parity (PPP) index, by the end of 2019, Iran was the 22nd largest economy in the world, producing about 1.172 trillion dollars in goods and services. In contrast, the Turkish economy based on the same index, producing about $ 2.3 trillion in goods and services, ranked 13th in the world economy and produced twice as much goods and services as Iran. World Bank data show that Iran's economy has practically stagnated from 2005 to 2020 (i.e., over a period of 15 years). In fact, the per capita GDP in terms of purchasing power for Iran has remained the same over this 15-year period, while this index for Turkey has increased 2.3 times during the same period. This means that every Turkish citizen, on average, has become 2.3 times richer in the last 15 years, while the Iranian people have become poorer every year so that the grand majority of them now live below the poverty line.
This difference and 120% growth of the Turkish economy compared to Iranian in the last 10 years, has several reasons; but the principal factor is the institutionalized corruption in the clerical Velayat-e-Faqih regime that clearly manifests itself from the lowest levels to the highest levels of economic management. When decision-makers make unprofessional decisions in the interests of certain groups, e.g. Islamic Revolutionary Guards Corps (IRGC), obviously the rich country of Iran, which is not comparable to Turkey in terms of natural resources, would stagnate economically and face more and more obstacles in its economic growth. Iran's biggest problem is the institutionalized corruption in its economy. They have even passed legislation to facilitate plundering and corruption for some preferred groups like IRGC. The result has been the astronomical windfall profits for regime officials and their affiliates on the one hand, and the poverty of the grand majority of society on the other. As a result, any hopes for repairing and untying the economic knots have evaporated, and the regime's economy has virtually gone bankrupt.
Another key point about the Turkish Lira value is that although the purchasing power of the Turks is much lower than the purchasing power of the average European, Turkey’s purchasing power index is about 80.55% higher than Iran’s. Understanding of these facts by Iranian people can be extremely dangerous for Khamenei, and protests by Turkish people against the economic situation can guide Iranian people to further protest the deplorable economic situation under Khamenei's rule!
BY: Cyrus Yaqubi
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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