Iran’s parliament has removed Economy Minister Abdolnaser Hemmati amidst severe inflation and the rial’s depreciation. Since 2015, the rial’s value has plummeted significantly, with escalating tensions regarding Iran’s nuclear program and international sanctions surfacing. Despite some efforts to combat the economic challenges, ongoing struggles continue to affect public confidence.
Iran’s parliament has dismissed Minister of Economy Abdolnaser Hemmati due to rampant inflation and a significant fall in the value of the rial. The rial’s exchange rate deteriorated from 32,000 to 584,000 rials against the dollar since 2015, and recently it reached 930,000 rials per dollar in Tehran’s exchange shops. This move comes amid escalating tensions surrounding Iran’s nuclear program and deteriorating relations with the Western world, partly a consequence of U.S. sanctions following the withdrawal from the 2015 nuclear deal.
During the impeachment proceedings, supporters of Hemmati argued that the economic challenges such as inflation and fluctuating exchange rates were not solely the current government’s fault. Lawmaker Mohammad Qasim Osmani indicated that a budget deficit inherited from the previous administration significantly contributed to this economic turmoil. He also highlighted geopolitical factors that have affected public confidence, leading many citizens to shift their savings into foreign currency, thereby exacerbating the rial’s depreciation.
Hemmati recognized the challenging economic conditions faced during his tenure, noting a minor decrease in inflation to 10%. However, he admitted that inflation remained at a concerning rate of 35% and assured lawmakers of ongoing efforts to rectify the situation, albeit acknowledging that the resolution would require time. This political shake-up reflects the broader economic and political challenges Iran faces as it strives to stabilize its economy while managing complex relationships with its leaders and the global community.
The dismissal of Iran’s economy minister underscores the persistent economic instability resulting from a combination of international sanctions and internal mismanagement. As inflation persists and the rial continues to lose value, the Iranian government faces increasing pressure to restore public confidence and bring about economic recovery. The road ahead remains uncertain, requiring careful navigation of both domestic issues and international relations.
Original Source: m.economictimes.com
