Aligning with a superpower worked for some countries during the Cold War, and for many others, it didn’t. But Iran never aligned itself with the US or the Soviet Union, preferring to maintain its independence and sovereignty. But where the Non-Aligned movement was dedicated to the principles of pretty much minding one’s own business, the coalition Iran is building is more dedicated to pushing back against the US.
But just for one very specific reason: inflation.
Ever since the United States left the 2015 Joint Comprehensive Plan of Action – also known as the ‘Nuclear Deal’ – sanctions imposed by the U.S. have left Iran’s currency and economy in tatters. As today is the day Iranians celebrate the New Year, Iran’s Supreme Leader is celebrating the regime’s resistance to the economic hardship.
“In the face of severe, and according to them unprecedented, sanctions from America and Europe, the Iranian people showed a strong and powerful reaction both in the field of politics and economy,” Supreme Leader Ali Khamenei said in a pre-recorded speech. President Hassan Rouhani echoed that sentiment and called for Iranian to stop fighting each other a band together against the United States.
With sanctions crippling the value of Iranian currency, the Iranian government is looking to its neighbors to strengthen the rial. Other countries like Germany and France, who are still party to the nuclear plan, have opened channels to Iran for trade without using the dollar. While this has eased the out of control inflation in the Islamic Republic, the rial is still trading at 190,000 to one. Iranians have seen their savings and their net worth plummet in the past few years, which is the first result of rampant inflation.
Banks, merchants, and institutions have also seen the values of their businesses and livelihoods decline as a result. Throughout Iran, the inflation and unhappiness with the sanctions, and the regime’s inability to do anything about it has caused widespread protests and demonstrations – some on the same scale of the ones that brought down the Shah and saw the Islamic Republic come to power.