Iran central bank chief blames foreign psy-ops for currency freefall
Iran's Central Bank chief Mohammadreza Farzin blames 'psychological operations' abroad for the sharp decline of the country's currency.
Iran's Central Bank chief Mohammadreza Farzin blames 'psychological operations' abroad for the sharp decline of the country's currency.
"They published a negative story every few hours," Farzin asserted, referring to US outlets that he said systematically derail his measures.
The Iranian rial plunged to a historic low against the US dollar on Wednesday, exceeding 780,000 rials per dollar. This marks a nearly 50% decline in the currency's value over the past year.
This news analysis comes after Bashar al-Assad in Syria lost his grip on power after support from Iran and its ally Hezbollah were sapped by over a year of conflict with Israel.
Prime Minister Mohammed Shia' al-Sudani, whose tenure is supported in part by Iran-backed armed groups, may now face pressure to prioritize Iraq’s sovereignty over foreign influence according to the daily.
"Iraq remains internally divided over the repercussions of the situation in Syria, with some still supporting intervention at this point. Factions and some actors in the Shiite political scene align with this view, consistent with Tehran’s stance, which has announced the continuation of resistance," wrote Al-Mada.
The Committee to Protect Journalists has said Al-Mada "is seen as one of the only remaining critical newspapers in Iraq".
Operating under the umbrella of the Popular Mobilization Forces (PMF) and supported by the Islamic Revolutionary Guard Corps (IRGC), these groups wield considerable power over Iraq’s governance, military operations, and energy infrastructure.
Despite their original mandate to combat ISIS, many of the militias have since expanded their activities, frequently targeting US forces and installations in Iraq with rockets and drones, and exacerbating tensions between Tehran and Washington.
The paper also highlighted fears of broader regional destabilization following the fall of Bashar al-Assad in Syria, a key ally of Iran.
"Political forces have started warning about scenarios similar to Syria’s situation if rapid internal reforms are not implemented," wrote Al-Mada, citing thinktanks advising Iraqi government to distance itself from the poor governance of the Shiite political forces that have held power since 2003.
Tehran’s armed affiliates in Iraq may be weakened by the developments in Syria. The Australian Arab Institute for Strategic Affairs recently warned that Baghdad faces a critical juncture: either curb the influence of Iran-backed militias or risk becoming a target for escalating Israeli and US military operations.
Adding to the uncertainty are concerns about the potential reactivation of ISIS sleeper cells given the security vacuum next door.
“Iraq is trying to maintain a somewhat balanced relationship with Washington and not align itself entirely with Tehran,” Rahim al-Aboudi, a senior official in the National Wisdom Movement, was quoted as saying.
Growing public discontent
Domestically, public anger toward Iran’s proxies has intensified in recent years, particularly after their violent suppression of 2019 anti-government protests which criticized Iranian influence.
Social media has amplified these frustrations, with posts encouraging attacks on the Iranian embassy and measures to end the activities of armed groups backed by Tehran.
“Numerous individuals or fake accounts have called for citizens to arm themselves in opposition to Iran-backed forces,” Truske Sadeghi, a former Iran International correspondent posted on X.
The warnings of instability echo fears of a repeat of Iraq’s tumultuous recent past.
Unlike the ISIS incursions of 2014 which originated from Syria, analysts warn that any future unrest could arise from within Iraq’s cities, fueled by the same grievances that sparked the 2019 protests but on a potentially larger scale.
While Baghdad has reiterated that its borders are secure, the government’s inability to effectively manage the influence of IRGC-backed militias has left the country vulnerable to both domestic upheaval and regional spillovers.
As Iraq navigates mounting international and domestic pressures, its leadership could face a critical choice: assert greater control over Tehran-backed forces or risk a deeper descent into instability.
Having lost Syria in a dramatic and unexpected turn of events, Iran’s hardliners find themselves with little to defend their position. They have shifted their focus to heavily campaigning for the implementation of a restrictive new hijab law, while attempting to deflect blame for the insurgents' victory onto their long-time ally Assad. Some hardliners argue that Assad lacked sufficient commitment to Tehran’s “axis of resistance,” yet they struggle to explain why the Revolutionary Guard did not make greater efforts to defend him.
Supreme Leader Ali Khamenei attempted to address the issue on December 11, claiming that the United States and Israel had blocked all land and air routes to Syria. However, this explanation was widely viewed as unconvincing, particularly given Tehran’s long-standing boasts of regional supremacy.
On Saturday, the country’s national security council decided to shelve the hijab law, bowing to public opposition as well as criticism from numerous current and former officials, along with commentators permitted to speak through tightly-controlled media channels.
Despite this, hardliner Foad Izadi sparked widespread backlash on social media and Iranian news websites by arguing that the insistence on hijab enforcement serves a political purpose for the Islamic government. He claimed that supporters of the political system expect religious laws to be taken seriously by officials, warning that failing to do so risks eroding the Islamic Republic’s base of loyal supporters.
"The Islamic Republic does not see its benefit in giving in, because it believes the locomotive of the train it is riding on consists of a hard core of supporters who are loyal precisely because of these [policies]. If the Islamic Republic compromises on a few principles, this core of loyalists will be the first group to step off the train,” Izadi said during a video discussion published online.
Ironically, Izadi, who has become a staunch ideologue for Iran's hardliners, was educated in the United States from an early age and holds a PhD from the University of Louisiana. This apparent contradiction was not lost on a commentator from the reformist Aftab News website, who criticized Izadi for advocating hardline policies after benefiting from an education abroad.
Meanwhile, the relatively moderate Rouydad24 published a scathing article on Sunday targeting Izadi and his peers, accusing them of exploiting the hijab issue to tighten their control over the government. Matin Ghafarian, writing for Rouydad24, argued that these ultra-hardliners are not solely focused on enforcing stricter hijab regulations but are also intent on imposing broader counterproductive policies.
The article warned that such policies would further alienate the public, destabilize the Islamic government, and make it increasingly reliant on hardliner support. Rouydad24 wrote, "These individuals embody their own words—they are not easily satisfied. After making the establishment dependent on themselves, they begin to conquer the system step by step."
The website went even further, accusing ultra-hardliners of using political issues, such as the hijab, as a pretext to expand their influence for financial gain. By pressuring the government to adopt more extreme policies, they have exacerbated economic sanctions and deepened Iran’s isolation. This, in turn, has allowed them to leverage their influence to gain control over key economic sectors under the guise of rescuing the economy, often benefiting from government subsidies in the process.
Rouydad24 concluded, "The demands of this small group will not end until they have fully taken over the country’s economy. This group effectively traps the government in a cycle of decline—creating crises and feeding off them. In reality, we are not dealing with a fanatical and hotheaded group, but rather a cunning mafia intent on seizing control of all the country's economic resources."
