Iranian Lawmakers Oust Finance Minister Amid Economic Turmoil

Iran’s parliament has sacked Finance Minister Abdolnaser Hemmati amid severe economic troubles, including soaring inflation and a declining currency. With the rial trading above 920,000 to the dollar, lawmakers have expressed frustration towards the government’s failure to address these issues effectively. President Pezeshkian defended Hemmati but faced mounting pressure from parliamentarians dissatisfied with the economic conditions, which are exacerbated by long-standing sanctions.

On Sunday, Iranian lawmakers dismissed the finance minister, Abdolnaser Hemmati, following his impeachment due to escalating inflation and a devaluing currency. In a parliamentary vote, 182 of 273 legislators present supported his removal. The Iranian rial’s exchange rate in the black market exceeded 920,000 to the US dollar, a drastic increase from less than 600,000 in mid-2024, reflecting severe economic distress.

President Masoud Pezeshkian defended Hemmati, emphasizing that the nation is engaged in a profound struggle and the economic challenges cannot be attributed to one individual. He urged a collective responsibility in addressing the issues at hand. Lawmakers voiced their frustrations, with parliamentarian Ruhollah Motefakker-Azad stating that citizens are unable to cope with the escalating inflation and rising prices of goods, particularly essential medications.

Pezeshkian aimed to revive the economy following the imposition of Western sanctions, but the rial’s depreciation has worsened, exacerbated by the recent political shifts in Syria. Hemmati argued that the fluctuating foreign exchange rates stem from inflation expectations rather than a stable market. He acknowledged that chronic inflation is a long-standing issue impacting the economy and citizens’ livelihoods significantly.

Iran’s economic instability stems largely from decades of US-led sanctions, with inflation rates consistently surpassing 30 percent annually since 2019. The World Bank reports a staggering 44 percent inflation rate in 2023. Hemmati’s predecessor, Masoud Karbasian, also faced dismissal amid similar economic challenges in 2018, indicating a recurring trend of political accountability for economic failures in Iran.

Upon dismissal, a caretaker minister will be appointed immediately until a replacement is found, adhering to the Iranian constitution. Previous ministerial removals have occurred in response to soaring prices linked to international restrictions, further demonstrating the direct impact of external pressures on domestic governance.

In summary, the removal of Finance Minister Abdolnaser Hemmati highlights the Iranian Parliament’s dissatisfaction with the government’s handling of severe economic issues. Lawmakers cited soaring inflation and currency devaluation as critical factors behind their decision. President Pezeshkian’s defense of Hemmati signifies the complexities of managing an economy affected by longstanding sanctions and internal challenges. The process of appointing a caretaker until a successor is designated will follow the dismissal, continuing the cycle of political accountability in response to economic distress.

Original Source: www.hindustantimes.com