Iran’s Parliament Impeaches Finance Minister Over Economic Crisis

Iran’s parliament impeached Finance Minister Abdolnasser Hemmati amid economic turmoil and the rial’s fall. The decision, reflecting growing discontent over mismanagement, comes amidst rising inflation and international sanctions pressure. Lawmakers called for greater cooperation while acknowledging the challenges left by the previous administration in the context of ongoing geopolitical tensions.

Iran’s parliament voted on Sunday to impeach Finance Minister Abdolnasser Hemmati due to the plummeting value of the rial and allegations of mismanagement. Speaker Mohammad Bagher Qalibaf announced that 182 out of 273 lawmakers supported the dismissal, occurring just six months after President Masoud Pezeshkian’s administration began. Pezeshkian defended Hemmati, urging for unity against challenges posed by the West.

This decision is set against a backdrop of escalating tensions regarding Iran’s nuclear aspirations and deteriorating relations with Western nations. The country’s economy has taken significant hits from international sanctions, notably after the U.S. exited the 2015 nuclear agreement. The rial, valued at 32,000 to the dollar in 2015, dramatically fell to about 930,000 rials per dollar recently, reflecting severe economic instability.

During the impeachment process, lawmaker Mohammad Qasim Osmani defended Hemmati, explaining that the current inflation and exchange rate crises were influenced by a budget deficit bequeathed by the previous government. He also cited various geopolitical factors that exacerbated public uncertainty, leading citizens to shift their savings into foreign currency, forcing the rial’s further devaluation.

Acknowledging the tough economic climate, Hemmati highlighted a modest 10% decrease in inflation during his tenure, although inflation remained high at 35%. He emphasized ongoing efforts to mitigate these economic challenges but cautioned that recovery would require time and collective action.

The dismissal of Finance Minister Abdolnasser Hemmati by Iran’s parliament underscores the severe economic challenges faced by the country, particularly the rapid devaluation of the rial and the impact of past administrations’ decisions. The call for unity in government reflects an awareness of the significant external pressures Iran currently encounters, particularly from Western nations and the ongoing nuclear negotiations. This event illustrates the ongoing political and economic turmoil within Iran’s governance structure.

Original Source: apnews.com