ِDr. Ali Madanizadeh explained that from the start of the plan, citizens were given two options,credit allocation or direct receipt of goods,based on extensive studies and international experience.

Madanizadeh highlighted fairness in subsidy distribution as a key feature of the government’s new policy. “Instead of giving subsidies to intermediaries in the supply chain, we directed them straight to consumers,” he said in an interview with Iranian television. According to him, this approach has been particularly effective for lower-income households, significantly increasing their relative purchasing power compared to other groups. In the past, he noted, those with greater need often received less benefit from preferential currency allocations, while now the welfare impact is far more concentrated among lower-income groups.

Addressing the rise in essential goods prices following the government’s currency reform, the minister said it is inaccurate to attribute price increases solely to items previously supported by preferential exchange rates. “When the exchange rate changes, the effect spreads across all goods.”

He attributed part of the price increases to market fluctuation, noting that uncertainty initially drove fluctuations. “The government’s economic team monitored the situation closely, and whenever disruptions occurred in imports or production, the responsible ministries intervened to stabilize the market,” he said. Another portion of the increases, he added, stems from economic mechanisms: when substitute goods become more expensive, demand for other products rises as well.