Iran Parliament Dismisses Finance Minister Amid Economic Crisis

Iran’s Parliament has dismissed Economy and Finance Minister Abdolnaser Hemmati following a vote of no confidence due to soaring inflation and currency depreciation. This decision highlights the ongoing economic crisis, exacerbated by longstanding US sanctions and rising costs of living. President Pezeshkian defended Hemmati, but lawmakers expressed their frustrations, blaming him for the worsening conditions. The dismissal allows for a caretaker minister until a replacement is found, indicating continued political uncertainty in Iran.

On Sunday, Iran’s Parliament voted to dismiss Economy and Finance Minister Abdolnaser Hemmati amid increasing inflation and a plummeting currency. The decision came after Hemmati lost a vote of confidence, with 182 out of 273 lawmakers present supporting his removal. As of this week, the Iranian rial was trading at over 920,000 to one US dollar in the black market, a significant increase from less than 600,000 just a few months prior.

President Masoud Pezeshkian defended Hemmati, stating that the country is engaged in a “full-scale war with the enemy” and emphasized that the economic issues cannot be attributed to a single individual. Lawmakers, however, expressed their dissatisfaction, blaming Hemmati for the worsening economic conditions that have burdened Iranian citizens, including rising prices for essential goods and medical supplies.

The Iranian economy has faced severe challenges due to decades of US sanctions, with inflation remaining above 30% annually in recent years. The situation has deteriorated particularly since the US withdrew from the 2015 nuclear agreement, which initially allowed for sanctions relief. Inflation rates reportedly reached 44% in 2023, adding to the struggles faced by the population.

During Hemmati’s defense, he stated, “The rate of the foreign exchange is not real; the price is due to inflationary expectations.” He acknowledged that chronic inflation has plagued the economy for many years. The rapid depreciation of the rial has intensified following the downfall of Syria’s Bashar al-Assad, which resulted in further economic instability.

According to the Iranian constitution, the dismissal of a minister is immediate, and a caretaker will be appointed until a replacement is chosen. This change follows previous dismissals, including that of former Industry Minister Reza Fatemi Amin in April 2023 due to similar economic pressures.

The Iranian Parliament’s decision to sack Finance Minister Abdolnaser Hemmati underscores the severity of the economic crisis faced by the nation, driven by soaring inflation and substantial currency depreciation. Despite defending Hemmati’s tenure, President Pezeshkian’s remarks indicate a recognition of the broader challenges posed by foreign sanctions and internal economic policy. The dismissal reflects ongoing political instability amid public dissatisfaction with economic management.

Original Source: www.hindustantimes.com