Iranian Lawmakers Dismiss Finance Minister Amid Economic Crisis

Iran’s parliament has dismissed Finance Minister Abdolnaser Hemmati due to increasing inflation and the declining value of the rial against the dollar. Despite President Pezeshkian’s defense of Hemmati, lawmakers expressed that economic woes fell squarely on his shoulders. The rial has depreciated significantly against the dollar, and criticism surrounds the government’s handling of the economy amidst continued sanctions.

On Sunday, the Iranian parliament ousted Finance Minister Abdolnaser Hemmati amid rising inflation and a struggling currency, as reported by state television. Hemmati’s removal followed a vote of confidence where 182 of 273 lawmakers supported his impeachment. The Iranian rial has seen significant depreciation, trading at over 920,000 to the US dollar on the black market, a stark decline from under 600,000 in mid-2024.

President Masoud Pezeshkian defended Hemmati prior to the vote, emphasizing the complex nature of the economic challenges facing Iran. He stated, “We are in a full-scale war with the enemy… we must take a war formation” and asserted that the economic troubles could not be attributed solely to Hemmati. Lawmakers expressed frustration and cited the unbearable inflation impacting citizens’ lives.

Critics of Hemmati, including parliamentarian Ruhollah Motefakker-Azad, expressed the public’s growing dissatisfaction over inflation and rising costs of essential goods, while Fatemeh Mohammadbeigi stated that many could not afford necessary medical supplies. Pezeshkian took office aiming to rejuvenate the economy, especially following US sanctions that worsened the rial’s depreciation after the fall of Bashar al-Assad’s regime in Syria.

Hemmati defended himself by stating that the current foreign exchange rates were unrealistic and attributed the economic issues to deep-rooted inflation affecting the country for years. The economic crises were exacerbated by decades of US-led sanctions, intensifying after the US withdrew from the nuclear deal in 2018, which had previously eased restrictions on Iran.

Since 2018, Iran has grappled with high inflation and unemployment rates, significantly burdening its population. According to the World Bank, inflation exceeded 30 percent annually since 2019, dramatically rising to 44 percent in 2023. Following Hemmati’s dismissal, a caretaker minister will be appointed until a new finance minister is selected, reflecting the Iranian constitution’s provisions regarding minister dismissals.

The Iranian parliament’s decision to remove Finance Minister Abdolnaser Hemmati highlights the ongoing economic challenges facing the nation, significantly marked by rampant inflation and currency devaluation. President Pezeshkian’s defense underscores the multifaceted nature of these issues, which are not solely attributable to individual leaders. As Iran continues to experience significant economic strain, the appointment of a new finance minister will be crucial in addressing the rampant inflation and instability affecting citizens’ lives.

Original Source: www.hindustantimes.com