Iran’s Parliament Impeaches Finance Minister Amid Economic Crisis

Iran’s parliament impeached Finance Minister Abdolnasser Hemmati on March 2, 2025, citing mismanagement and the collapsing rial as key issues. President Masoud Pezeshkian defended him, emphasizing the need for unity against Western pressures. With the rial sharply devalued after the U.S. exit from the nuclear deal, economic challenges persist, leading to Hemmati’s dismissal only six months into the new government.

TEHRAN, Iran (AP) — In a significant political move, Iran’s parliament impeached Finance Minister Abdolnasser Hemmati on March 2, 2025, amidst escalating concerns surrounding the collapsing rial and allegations of mismanagement. Out of the 273 lawmakers present, 182 voted for Hemmati’s dismissal, only six months following the inauguration of President Masoud Pezeshkian’s administration.

President Pezeshkian defended Hemmati during the proceedings, underlining the government’s ongoing struggle against Western pressures and urging parliamentarians to foster unity in facing such challenges. The dismissal occurs within a backdrop of heightened tensions related to Iran’s nuclear program and deteriorating relations with the West, exacerbated by international sanctions that significantly impacted the economy.

Since the U.S. withdrawal from the 2015 nuclear agreement, Iran’s economy has suffered immensely. The value of the rial has plummeted from approximately 32,000 to the dollar in 2015, to an alarming 930,000 rials per dollar in recent days.

In defense of Hemmati, lawmaker Mohammad Qasim Osmani communicated that the ongoing inflation and fluctuating exchange rates are not solely attributable to the current government or Parliament, but rather stem from a budget deficit inherited from the previous administration, compounded by recent geopolitical tensions.

Hemmati, acknowledging the difficult economic environment during his brief tenure, noted a 10% reduction in inflation while recognizing that the overall inflation rate remained a concerning 35%. He emphasized his administration’s commitment to addressing economic challenges, albeit indicating that such reforms would require time.

The dismissal of Finance Minister Abdolnasser Hemmati by Iran’s parliament highlights significant political and economic challenges facing the nation. Amidst rising inflation and a severely devalued rial, the demand for unity and effective governance becomes increasingly pronounced. The ongoing tensions with the West and the impact of prior governmental policies complicate the situation, necessitating a thoughtful and coordinated response to restore economic stability. Thus, Iran’s leadership faces critical decisions moving forward, balancing internal cohesion with external pressures to mitigate the economic crisis.

Original Source: apnews.com