Iranian Parliament Dismisses Finance Minister Amid Economic Turmoil

Iran’s parliament impeached Finance Minister Abdolnasser Hemmati amid concerns of.currency depreciation and economic mismanagement. 182 lawmakers voted for his dismissal within six months of President Pezeshkian taking office. The rial has significantly devalued since the U.S. withdrew from the nuclear deal, igniting inflation and public discontent.

On March 2, 2025, Iran’s parliament held an impeachment session and subsequently dismissed Finance Minister Abdolnasser Hemmati due to the deteriorating value of the rial and mismanagement allegations. This decision followed a vote where 182 out of 273 lawmakers supported the motion, occurring merely six months after President Masoud Pezeshkian’s administration assumed office.

During the impeachment, President Pezeshkian defended Hemmati, emphasizing the government’s struggle against Western pressures. He encouraged the parliament to focus on cooperation to tackle pressing economic challenges. This political shift coincides with heightened tensions regarding Iran’s nuclear ambitions and deteriorating ties with Western nations, all of which have adversely impacted the Iranian economy.

Since the U.S. exited the 2015 nuclear accord, the rial’s value has suffered dramatically, sinking from 32,000 to 584,000 rials per dollar by July. Recent reports indicated that exchange rates in Tehran reached 930,000 rials for a dollar. The economic situation has led to significant inflation and a loss of public trust.

Lawmakers supporting Hemmati, such as Mohammad Qasim Osmani, contended that factors beyond the current government’s control, including a substantial budget deficit from the previous administration and recent geopolitical developments, played substantial roles in the economic downturn. He asserted that public sentiment had contributed to the currency’s depreciation, as people sought refuge in foreign currency.

Despite his brief tenure, Hemmati acknowledged an understatement of the severe economic conditions, with inflation reported at 35% and a 10% drop during his administration. He reassured the legislators of his commitment and the team’s efforts to ameliorate the situation, though he cautioned that such improvements would take time.

The impeachment of Finance Minister Abdolnasser Hemmati underscores the urgency of Iran’s economic crisis linked to the plummeting rial and political mismanagement accusations. This event highlights the ongoing challenges faced by the current administration amid international sanctions and strained relations. The parliament’s decision reflects a critical moment in Iran’s political landscape as it navigates economic instability and international pressures.

Original Source: apnews.com