Amid protests fueled by a deepening economic crisis, the Iranian government announced on Monday plans to provide a monthly payment to each citizen equivalent to about seven dollars.

Government spokesperson Fatima Mahajerani said the measure aims to “preserve families’ purchasing power, curb inflation, and ensure food security.” However, the payment is unlikely to significantly ease the economic hardship facing most Iranians, whose basic monthly expenses exceed $200.

In late December, mounting economic pressure prompted merchants and university students in several cities to stage protests, closing markets and demonstrating on campuses. Over the past year, Iran’s currency has lost more than half its value against the dollar, while official data shows inflation exceeded 42% in December alone.

Public reaction to the announcement was largely negative, with many Iranians viewing the payment as an insult or a “bribe.” Protesters described the move as “disrespectful,” arguing the amount has already been eroded by inflation. Others sarcastically suggested the money be given to officials accused of fuel smuggling.

Chants during demonstrations mocked the payment, with protesters saying seven dollars “is not enough for a café visit” or “covers half an hour of work,” accusing authorities of attempting to buy off public anger.

The protests, now in their tenth day, have spread to 22 of Iran’s 31 provinces. While smaller than previous nationwide uprisings, slogans have gone beyond economic grievances to include calls for freedom and the overthrow of the Islamic Republic’s leadership.

A demonstration in support of Iranian protests in Paris (AFP).

In a statement issued on Sunday, government spokesperson Mahajerani said that the $10 billion previously spent each year to subsidize certain imports would instead be redirected toward direct payments to Iranian citizens. These payments, worth one million Iranian toman — or roughly seven dollars — would be offered as loans to eligible Iranians to purchase specific goods. Mahajerani did not specify which goods would be covered by the loans.

The monthly payment would cover the equivalent of about 100 eggs, one kilogram of red meat, or several kilograms of rice or chicken at current prices in Iran. The payments would be distributed to 80 million Iranians, the vast majority of the population.

Esfandyar Batmanghelidj is the founder and CEO of the Bourse & Bazaar Foundation,  said Iranian authorities may hope that policies aimed at appeasing traders and the poorest segments of society will be enough to calm the main grievances fueling the protests.

However, he said it is unlikely that these new payments will be sufficient to change the general sense of despair among Iranians about the economy and their future.