Iran’s parliament has impeached Finance Minister Abdolnaser Hemmati due to soaring inflation and a collapsing currency. His dismissal, backed by 182 lawmakers, follows public outcry over economic hardships. The rial’s black market rate has surged beyond 920,000 to the dollar, exacerbating inflation concerns. President Pezeshkian defended Hemmati, stating that economic issues are not solely his responsibility, while lawmakers voiced frustrations over the rising costs of essentials.
Iran’s parliament has removed Economy and Finance Minister Abdolnaser Hemmati following an impeachment prompted by severe economic challenges, including soaring inflation and the decline of the national currency, the rial. The minister lost a confidence vote with 182 out of 273 parliamentarians supporting his ousting. The rial is currently trading at over 920,000 to the US dollar on the black market, a stark increase from less than 600,000 earlier this year.
In defense of Hemmati, President Masoud Pezeshkian emphasized the need for a united front against external pressures, characterizing the economic troubles as a comprehensive struggle rather than the fault of a single individual. Lawmakers expressed their frustration, with several blaming Hemmati for the public’s increasing hardship due to high inflation and escalating prices of essential goods.
Despite taking office with a goal to revitalize the economy and mitigate the impacts of sanctions, recent events, including the depreciation of the rial following the instability in Syria, have worsened the situation. Hemmati defended his position by attributing the economic crisis to chronic inflation, stating it has afflicted the country for years, while also pointing out that current foreign exchange rates do not accurately reflect real value.
The complications faced by Iran’s economy stem from years of US sanctions, particularly following the withdrawal from the 2015 nuclear agreement, which had previously allowed for some sanctions relief. Under President Donald Trump’s renewed “maximum pressure” approach, inflation and unemployment have surged, leading to a cost of living crisis for many Iranians.
Inflation rates have exceeded 30 percent annually since 2019, reaching 44 percent in 2023 as reported by the World Bank. The Iranian Constitution stipulates that the dismissal of a minister is effective immediately, with an interim minister appointed until a replacement is chosen. This change follows the removal of another high-ranking official earlier this year over similar concerns regarding management of the economy.
The removal of Minister Abdolnaser Hemmati reflects the intense scrutiny and criticism faced by government officials amid Iran’s escalating economic crisis. With inflation spiking and the currency depreciating significantly, parliamentary members are demanding accountability and swift action to address the resulting hardships experienced by citizens. As the government seeks to navigate these economic challenges, the overarching impact of international sanctions continues to resonate throughout the Iranian economy.
Original Source: www.hindustantimes.com
