Iran Lawmakers Dismiss Finance Minister Amid Economic Crisis

Iran’s parliament has dismissed Finance Minister Abdolnaser Hemmati amid soaring inflation and a plummeting rial. Lawmakers criticized Hemmati’s handling of the economy, with the rial trading over 920,000 to the US dollar on the black market. President Pezeshkian defended him, attributing the economic issues to various factors rather than one individual. The dismissal reflects ongoing economic strife in Iran due to US sanctions and inflation exceeding 44% in 2023.

On Sunday, Iran’s parliament voted to dismiss the country’s Finance Minister, Abdolnaser Hemmati, as a result of soaring inflation and a depreciating currency. With 182 out of 273 lawmakers present, Hemmati failed to secure the necessary votes of confidence. Following his ousting, the Iranian rial was reported to be trading over 920,000 to the US dollar on the black market, a stark increase from less than 600,000 in mid-2024.

President Masoud Pezeshkian defended Hemmati, citing the broader challenges of the economy, stating, “We are in a full-scale war with the enemy… we must take a war formation.” He argued that economic troubles could not be solely attributed to one individual. Nevertheless, lawmakers vehemently criticized Hemmati, blaming him for failing to control inflation and rising costs of essential goods such as medicine and medical equipment.

Despite Pezeshkian’s efforts to revitalize the economy and lift sanctions since taking office in July, the Iranian rial’s depreciation has worsened amid regional turmoil, particularly following the fall of Iran ally Bashar al-Assad in Syria. Hemmati defended himself by stating, “The most important problem of the country’s economy is inflation, and that is chronic inflation, which has plagued our economy for years.”

The Iranian economy has been under strain due to decades of US-led sanctions, causing hyperinflation and rising consumer prices since the US exited the 2015 nuclear deal in 2018. This situation has led to significant hardships for everyday Iranians, compounding issues of unemployment and the currency’s depreciation. Since 2019, inflation rates have remained above 30%, reaching an alarming 44% in 2023 according to the World Bank.

According to the Iranian constitution, the dismissal of a minister is immediate, and a caretaker will be appointed until a replacement is selected. This recent dismissal comes on the heels of previous dismissals and reflects ongoing economic challenges that have led to increased scrutiny of government officials. The Iranian parliament had previously dismissed the minister of industry in April 2023 due to similar economic pressures.

In summary, the recent dismissal of Finance Minister Abdolnaser Hemmati by Iranian lawmakers underscores the country’s ongoing economic difficulties marked by rampant inflation and currency devaluation. President Pezeshkian’s attempts to defend Hemmati reveal the complexities of Iran’s economic crisis, exacerbated by external sanctions and internal governance challenges. This political shift raises concerns about the future management of Iran’s economy amidst persistent high inflation and rising costs for citizens.

Original Source: www.hindustantimes.com