Iran Introduces $7 Monthly Payments Amid Widespread Protests Over Economic Crisis
TEHRAN, Iran — In a bid to alleviate mounting economic pressures and quell escalating protests, the Iranian government announced a new program to provide citizens with monthly payments equivalent to approximately $7. The announcement, made by government spokesperson Fatemeh Mohajerani on Iranian State TV, signals a significant shift from longstanding import subsidies toward direct financial assistance aimed at preserving purchasing power and ensuring food security.
According to reports, the measure will redirect roughly $10 billion annually—previously spent on subsidizing imports—directly to Iranian households. Eligible citizens are expected to receive one million Iranian tomans, about $7, in credit form to purchase goods. The labor minister indicated that this payment would cover around 80 million people, encompassing the majority of Iran’s population.
This development comes amid widespread protests that have engulfed more than 78 cities and 222 locations across the country, according to the U.S.-based Human Rights Activists in Iran (HRAI). Demonstrators, including merchants, traders, and university students, have taken to the streets demanding an end to the regime led by Supreme Leader Ayatollah Ali Khamenei. The unrest has led to market closures and campus rallies, with security forces reportedly responding with lethal force. HRAI has documented at least 20 fatalities, including three children.
Iran’s economy has been severely impacted by international sanctions and declining oil revenues, contributing to a sharp devaluation of the Iranian rial. The currency has lost more than half its value against the U.S. dollar in recent months. The Statistical Center of Iran, a state-run body, reported an average annual inflation rate of 42.2% as of December 2025. These economic hardships have fueled public anger and intensified calls for reform.
The new payment program aims to curb inflation and stabilize the purchasing power of households, according to Mohajerani. By providing direct credits, the government hopes to better manage food security and reduce the economic strain on ordinary Iranians. This approach marks a departure from the traditional subsidy model, which critics argue has been inefficient and prone to corruption.
International observers are closely monitoring the situation as protests show no signs of abating. The unrest has raised concerns about regional stability and the potential for further crackdowns by Iranian security forces. The U.S. Department of State has condemned the violence against protesters and called for respect for human rights.
Meanwhile, Iran’s Supreme Leader Ayatollah Khamenei has publicly denounced the demonstrations, framing them as threats to national security. Despite the government’s efforts to introduce economic relief, many protesters remain skeptical, demanding broader political changes.
As the country grapples with economic turmoil and political unrest, the effectiveness of the $7 monthly payment program remains to be seen. Analysts warn that without addressing deeper structural issues, such measures may provide only temporary respite. The coming weeks will be critical in determining whether Iran can stabilize its economy while managing the growing demands of its citizens.
Leave a Reply