Iran Parliament Dismisses Finance Minister Amid Economic Crisis

Iran’s parliament removed Finance Minister Abdolnaser Hemmati due to soaring inflation and currency devaluation, with a vote of 182 out of 273 lawmakers supporting his impeachment. President Pezeshkian defended Hemmati, stating the economic issues are systemic and not solely his fault. The rial’s value continues to plummet, significantly impacting Iranian citizens amid ongoing sanctions and economic hardship.

On Sunday, Iran’s parliament voted to dismiss Finance Minister Abdolnaser Hemmati following an impeachment process addressing the country’s severe economic challenges, including rampant inflation and a devaluing currency. A total of 182 out of 273 lawmakers present supported his removal amid mounting public dissatisfaction. The Iranian rial traded at over 920,000 against the US dollar on the black market, a significant increase compared to less than 600,000 in mid-2024.

President Masoud Pezeshkian defended Hemmati, emphasizing that the economic crisis is multi-faceted and calling for unity against perceived external threats. He stated, “We are in a full-scale war with the enemy… we must take a war formation.” Lawmakers repeatedly criticized Hemmati for the soaring prices of goods and the intolerable inflation affecting citizens’ ability to afford essentials.

The depreciation of the rial has worsened considerably, particularly following shifts in regional alliances. Hemmati, formerly a central bank governor, acknowledged that chronic inflation has plagued the economy for years, calling it the primary issue needing urgent attention.

The Iranian economy has faced immense pressure since the US withdrew from the 2015 nuclear deal, leading to renewed sanctions. The situation has been exacerbated by double-digit inflation rates and rising unemployment, which have drastically impacted daily life for Iranians, particularly since 2018. In recent reports, inflation reached an alarming 44 percent in 2023, contributing to widespread discontent.

According to constitutional guidelines, Hemmati’s dismissal took immediate effect, leading to the appointment of a caretaker minister until a successor is named. In April 2023, the parliament had previously dismissed Industry Minister Reza Fatemi Amin in response to price surges linked to sanctions.

In summary, the dismissal of Finance Minister Abdolnaser Hemmati reflects the deepening economic crisis plaguing Iran, marked by skyrocketing inflation and a devalued currency. Despite the challenges, the government seeks to address systemic issues that have long affected the nation. The parliament’s decision reinforces the urgency for effective economic management amidst ongoing external pressures and internal discontent.

Original Source: www.hindustantimes.com