Iran Lawmakers Dismiss Finance Minister Amid Economic Crisis

Iranian lawmakers have removed Finance Minister Abdolnaser Hemmati due to soaring inflation and a declining currency, with 182 parliamentary votes in favor of his dismissal. President Masoud Pezeshkian defended Hemmati, emphasizing the need for a collective response to economic challenges. The Iranian rial’s depreciation has dramatically affected the cost of goods and services, reflecting an ongoing crisis exacerbated by international sanctions.

Iran’s parliament voted to dismiss the finance minister, Abdolnaser Hemmati, amid concerns of rising inflation and a declining currency, according to state television. With 182 out of 273 members present, lawmakers cited the poor economic management as grounds for his removal. In the black market, the Iranian rial was trading above 920,000 to the US dollar, a stark contrast to under 600,000 less than a year prior.

President Masoud Pezeshkian previously defended Hemmati, arguing that the economic challenges are not solely the responsibility of one individual. He emphasized the ongoing pressure from external forces, stating, “We are in a full-scale war with the enemy… we must take a war formation.” Lawmakers expressed frustration, insisting that the public cannot bear the inflation surge and rising costs of essential commodities.

Hemmati’s defense highlighted chronic inflation as the primary issue, claiming, “The rate of the foreign exchange is not real; the price is due to inflationary expectations.” However, the Iranian economy has suffered significantly due to decades of sanctions, worsening after the United States withdrew from the 2015 nuclear deal. Since then, Iran has faced rampant inflation, high unemployment, and a depreciating currency, putting immense pressure on its citizenry.

Historical context shows that in 2018, Hemmati’s predecessor, Masoud Karbasian, was also removed under similar circumstances due to economic mismanagement. Under US sanctions, inflation rates have soared, surpassing 30% annually since 2019, with recent figures indicating it reached 44% in 2023. The constitution mandates an immediate appointment of a caretaker following Hemmati’s dismissal until a suitable replacement is named.

In previous months, Parliament also dismissed the minister of industry due to price surges attributed to international sanctions. Overall, the dismissal reflects serious challenges within Iran’s economic governance as it grapples with external and internal pressures.

The dismissal of Iran’s finance minister underscores the political and economic turmoil the country is experiencing. With lawmakers expressing severe discontent over inflation and currency depreciation, the government faces mounting pressure to find effective solutions. The ongoing impact of US sanctions continues to stifle the economy, raising questions about the future stability and management of Iran’s financial sectors.

Original Source: www.hindustantimes.com