Iranian Lawmakers Dismiss Finance Minister Amid Escalating Economic Crisis
Iran’s parliament removed Finance Minister Abdolnaser Hemmati due to high inflation and currency collapse, with the rial trading at over 920,000 to the dollar. Despite President Pezeshkian’s defense, lawmakers expressed anger over rising prices of goods, including medicine, pointing to ongoing economic mismanagement. Iran’s economy remains strained by US sanctions and persistent inflation issues.
On Sunday, Iran’s parliament voted to dismiss Finance Minister Abdolnaser Hemmati amid ongoing economic turmoil characterized by soaring inflation and a significantly depreciating currency. Hemmati lost the confidence of lawmakers, with 182 votes in favor of his impeachment out of 273 present members. As a consequence, on the black market, the Iranian rial’s exchange rate exceeded 920,000 to one US dollar, a marked decline from less than 600,000 in mid-2024.
President Masoud Pezeshkian previously defended Hemmati, arguing against blaming a singular individual for the complex economic challenges, stating, “We must take a war formation.” Lawmakers expressed their frustrations, emphasizing the urgency to control the inflation and currency rise affecting citizens’ purchasing power, notably in essential goods and medicine.
During his time in office, Pezeshkian had aimed at economic revitalization and alleviation of Western-imposed sanctions; however, the depreciation of the rial escalated, particularly after the fall of Syrian leader Bashar al-Assad in December. Defending himself, Hemmati noted, “The rate of the foreign exchange is not real; the price is due to inflationary expectations,” pinpointing chronic inflation as the core issue.
The Iranian economy has struggled under decades of US-led sanctions, with double-digit inflation exacerbating the situation since the United States exited the 2015 nuclear deal. Following this decision, then-President Donald Trump reinstated stringent sanctions contributing to persistent economic difficulties, including high inflation and soaring unemployment affecting the populace.
Iran has witnessed inflation exceed 30 percent annually since 2019, reaching an alarming 44 percent in 2023 according to World Bank statistics. As stipulated in the Iranian constitution, Hemmati’s dismissal is immediate, with a caretaker appointed to oversee the ministry until a new minister is appointed. In previous instances, such as in April 2023, other ministers have been removed under similar economic pressures, underscoring the ongoing instability within the Iranian government.
Iranian lawmakers have dismissed Finance Minister Abdolnaser Hemmati in response to the country’s ongoing economic crisis marked by severe inflation and currency depreciation. Despite prior defense from President Pezeshkian, the parliament’s decision reflects significant public dissatisfaction and pressures attributed to economic mismanagement. This situation reiterates the long-standing issues posed by sanctions and chronic inflation, which continue to impact Iranian citizens significantly.
Original Source: www.hindustantimes.com
