Iran’s parliament removed Finance Minister Hemmati due to rampant inflation and currency devaluation, with lawmakers attributing economic woes to his leadership. The rial’s value has plummeted to over 920,000 to the dollar, as lawmakers criticized the public’s struggle with affordability. Despite defense from President Pezeshkian, the minister faced harsh reprimands for failing to stabilize prices, showcasing the deep-seated economic issues driven by sanctions and inflation.
Iran’s parliament dismissed Finance Minister Abdolnaser Hemmati over economic issues, such as skyrocketing inflation and a devalued currency. A vote revealed 182 out of 273 lawmakers supported his impeachment. On the black market, the Iranian rial had plummeted to over 920,000 against the US dollar, a stark contrast to less than 600,000 in mid-2024.
Despite being defended by President Masoud Pezeshkian, who emphasized collective responsibility for the economy, Hemmati faced vehement criticism from lawmakers. They expressed outrage over the public’s struggle with increasing inflation. Some parliamentarians highlighted the inability of citizens to afford essential goods like medicine and equipment.
After taking office in July, Pezeshkian hoped to stabilize the economy amidst Western sanctions. However, currency depreciation worsened, affected by the civil unrest in Syria, which impacted Iran’s economic stability. The day before Syria’s ally was overthrown, the dollar was valued at approximately 717,000 rials on Iran’s black markets.
Hemmati attributed economic turmoil to chronic inflation, claiming that the current foreign exchange rates were misaligned due to inflated expectations. He warned that continued inflation had been a longstanding issue in the economy, exacerbated by U.S.-led sanctions after the 2015 nuclear deal’s unraveling.
Since the U.S. withdrew from the nuclear agreement in 2018, Iran’s economy has seen a downturn, with relentless inflation and high unemployment rates affecting the populace. Reports indicate that inflation has surpassed 30% annually since 2019 and reached 44% in 2023, according to the World Bank.
With ministerial dismissals effective immediately as per Iranian law, a caretaker will be assigned until a replacement is appointed. Previously, in April 2023, another minister faced dismissal due to rising prices linked to sanctions.
Ultimately, the situation reflects the significant challenges faced by Iran, underscoring the impact of political actions on economic stability, particularly under heavy U.S. sanctions and domestic inflationary pressures.
The sacking of Finance Minister Abdolnaser Hemmati by Iran’s parliament highlights the country’s ongoing economic crisis characterized by soaring inflation and a rapidly depreciating currency. Criticism from lawmakers emphasizes deep public discontent over economic issues linked to the fallout from U.S. sanctions and internal challenges. The dismissal reveals urgent calls for leadership change amidst persistent economic turmoil, reinforcing the fragile state of Iran’s economy under current geopolitical strains.
Original Source: www.hindustantimes.com
