Iran’s Parliament voted to impeach Finance Minister Abdolnaser Hemmati due to high inflation rates and the declining value of the rial, which now trades over 920,000 to the US dollar. President Pezeshkian defended Hemmati, emphasizing that the economic crisis is not solely his fault. Lawmakers and citizens expressed their discontent regarding the government’s economic management, with inflation reaching 44% in 2023. A caretaker minister will be appointed following Hemmati’s dismissal to address these severe economic issues.
On Sunday, Iran’s Parliament voted to remove Economy and Finance Minister Abdolnaser Hemmati due to escalating inflation and the depreciating currency, with 182 of 273 lawmakers backing the impeachment. The Iranian rial was reported trading at over 920,000 to the US dollar on the black market, in stark contrast to 600,000 in mid-2024. President Masoud Pezeshkian, who previously defended Hemmati, emphasized that the economic crisis cannot be attributed to a single individual, despite mounting public unrest over rising prices and economic hardship.
Parliamentarians expressed their frustration over Hemmati’s handling of the economy, with voices like Ruhollah Motefakker-Azad stating that “People cannot tolerate the new wave of inflation; the rise in the price of foreign currency and other goods must be controlled,” while Fatemeh Mohammadbeigi highlighted the struggling public’s inability to afford essential healthcare products. Despite these criticisms, Hemmati maintained that chronic inflation remains the foremost issue plaguing Iran’s economy, exacerbated by long-standing sanctions.
The Iranian currency’s value has continuously deteriorated, particularly following the political upheaval in Syria and intensified US sanctions. The recent economic hardships trace back to the United States’ withdrawal from the 2015 nuclear accord, which had initially offered Iran economic relief. Since 2018, the Iranian economy has faced relentless pressure from high inflation rates, significant unemployment, and currency depreciation, profoundly affecting the daily lives of Iranian citizens.
Pezeshkian, who took office in July with the goal of economic revitalization, expressed that the situation requires a concerted effort akin to a wartime strategy. In 2023, inflation reached a staggering 44 percent, according to World Bank data, signifying a critical juncture for Iran’s economic stability. Following the dismissal of Hemmati, a caretaker minister will be appointed until a permanent replacement is confirmed, underscoring the urgent need for effective governance amid ongoing economic challenges.
The dismissal of Finance Minister Abdolnaser Hemmati by the Iranian Parliament underscores the severity of the nation’s economic struggles, particularly soaring inflation and currency depreciation. Despite President Pezeshkian’s defense against blaming individual officials, public dissatisfaction is palpable, driving demands for substantial changes. The situation reflects a broader economic crisis exacerbated by external sanctions and internal mismanagement, highlighting the need for a strategic and unified approach to restore stability in Iran. Policy changes and effective leadership will be critical as the Iranian government seeks to navigate these pressing economic challenges, which have severely impacted the daily lives of its citizens. The implications of this dismissal and the subsequent appointment of a caretaker minister will be closely monitored for their effectiveness in addressing the escalating crisis.
Original Source: www.hindustantimes.com
