The problem begin with the Iranian banking system, which is now teetering on the verge of full-blown crisis. A summer 2019 study by the Peterson Institute for International Economics, a prestigious Washington, D.C. think tank, found significant liquidity and solvency problems among the country’s fragile financial institutions, which are now deemed to be in a “precarious” position. The problems, moreover, are ongoing. While a collapse of institutions may not be in the offing in the short run, “banking distress will continue to mount, making the system more vulnerable to an external shock” like a military conflict or further slowdown in oil exports, says Adnan Mazarei, a former deputy-director at the International Monetary Fund.
Read More: https://thehill.com/opinion/international/470897-irans-economy-is-a-house-of-cards