Iran’s Parliament Dismisses Finance Minister Amid Economic Crisis

Iran’s parliament ousted Finance Minister Abdolnaser Hemmati amid soaring inflation and a plunging rial, which now trades at over 920,000 to the US dollar. Lawmakers blamed him for the economic crisis, despite President Masoud Pezeshkian’s defense of his administration. Hemmati was replaced by Rahmatollah Akrami as the interim minister as Iran faces chronic inflation exceeding 44% in 2023.

On Sunday, Iran’s parliament dismissed Finance Minister Abdolnaser Hemmati due to escalating inflation and a deteriorating currency value. Hemmati faced an impeachment vote, resulting in 182 out of 273 lawmakers supporting his removal. This follows a significant decline in the Iranian rial, which traded over 920,000 to the US dollar in the black market, a stark decline from under 600,000 in mid-2024.

President Masoud Pezeshkian defended Hemmati during the impeachment, insisting that Iran is engaged in an economic conflict and that the issues cannot rest solely on one individual. He emphasized the necessity for a collaborative approach to address the economic crisis, citing the need for a unified strategy in the face of external pressures.

Lawmakers expressed their discontent towards Hemmati, indicating that the populace struggles with rising prices and purchasing power. Parliamentarian Ruhollah Motefakker-Azad remarked, “People cannot tolerate the new wave of inflation; the rise in the price of foreign currency and other goods must be controlled.” Similarly, Fatemeh Mohammadbeigi highlighted the inaccessibility of medicine due to economic constraints.

Despite President Pezeshkian’s goals to rejuvenate the economy and mitigate sanctions, the rial’s depreciation has escalated, especially after significant political changes in allied nations. Hemmati defended himself by stating, “The rate of the foreign exchange is not real; the price is due to inflationary expectations.”

He acknowledged chronic inflation as a fundamental issue impairing Iran’s economy, which has persisted for years despite various efforts. Following his dismissal, Rahmatollah Akrami, a deputy economy minister, assumed the interim position.

Since the US’s withdrawal from the nuclear deal in 2018, Iran’s economy has been harshly impacted, leading to prolonged inflation and unemployment. In 2023, inflation surged to 44 percent, and the economic instability raised concerns among Iranians, urging immediate remedial actions from the government.

Under the constitution, Hemmati’s dismissal is effective immediately, necessitating a caretaker until a replacement is appointed. The recent parliament vote echoes a trend where ministers are held accountable for economic distress, exemplified by the 2023 removal of Industry Minister Reza Fatemi Amin.

In conclusion, the dismissal of Finance Minister Abdolnaser Hemmati highlights serious concerns regarding Iran’s economic stability, characterized by high inflation and currency depreciation. The parliament’s discontent reflects widespread public dissatisfaction with economic management amid ongoing sanctions. The leadership continues to face challenges in restoring economic confidence while navigating external pressures and internal calls for accountability.

Original Source: www.iosconews.com