Iranian lawmakers impeached Finance Minister Abdolnaser Hemmati amid soaring inflation and a devaluing rial, now trading at over 920,000 to the US dollar. President Pezeshkian defended Hemmati, emphasizing collective responsibility. Despite his defense, lawmakers expressed outrage over economic hardships, prompting Hemmati’s removal and underscoring ongoing economic challenges in Iran.
Iran’s parliament has removed Economy and Finance Minister Abdolnaser Hemmati due to rising inflation and a declining currency. Following a vote of confidence, 182 of 273 lawmakers present supported his impeachment. The Iranian rial is currently trading at over 920,000 to the US dollar on the black market, significantly down from less than 600,000 earlier in 2024.
President Masoud Pezeshkian initially defended Hemmati, emphasizing that economic challenges are not solely attributable to one individual. He remarked, “We are in a full-scale war with the enemy… we must take a war formation,” highlighting the need for collective efforts in addressing economic issues.
Nevertheless, parliamentarians expressed frustration, blaming Hemmati for the economic turmoil, with Ruhollah Motefakker-Azad stating, “People cannot tolerate the new wave of inflation; the rise in the price of foreign currency and other goods must be controlled.” Meanwhile, Fatemeh Mohammadbeigi voiced concerns over medical expenses becoming unaffordable.
Pezeshkian had taken office in July and aimed to revitalize the economy while mitigating Western sanctions. However, the depreciation of the rial has worsened, particularly following the political upheaval in Syria involving Iran’s ally, Bashar al-Assad, with the dollar previously trading at approximately 717,000 rials.
In his defense, Hemmati pointed to persistent inflation as the main issue, claiming, “The rate of the foreign exchange is not real; the price is due to inflationary expectations.” He added that chronic inflation has plagued the Iranian economy for years, exacerbated by sanctions and other pressures since 2018.
In that year, the US withdrew from the nuclear deal, reinstating sanctions and intensifying economic pressure. Iran’s economy has suffered greatly since then, with an inflation rate exceeding 30 percent annually, even reaching 44 percent in 2023 according to World Bank data.
Under Iranian law, the minister’s dismissal becomes effective immediately, and a caretaker will assume duties until a new replacement is appointed. This is not the first instance; a previous economy minister faced impeachment in 2018 due to similar economic distress.
The recent impeachment of Iran’s finance minister highlights the ongoing economic crisis affecting the nation, exacerbated by sanctions and chronic inflation. With the rial’s value plummeting and everyday necessities becoming increasingly unaffordable for citizens, parliamentary dissatisfaction is evident. Moving forward, it remains critical to address these economic challenges effectively, with leadership that can navigate the complex interplay of internal and external pressures.
Original Source: www.hindustantimes.com
