Iran’s parliament has ousted Economy Minister Abdolnaser Hemmati due to the rial’s drastic drop, linked to economic mismanagement and sanctions. The rial’s value has decreased significantly since 2015, culminating in a current exchange rate of 930,000 rials to the dollar. Supporters point to prior administration budget deficits and international tensions as primary contributors to current economic instability.
Iran’s parliament has dismissed the Minister of Economy, Abdolnaser Hemmati, following the dramatic decline of the national currency, the rial, which has fallen significantly amid economic mismanagement and international sanctions. The rial’s value has plummeted from 32,000 to 584,000 against the dollar since 2015, and recently plunged to 930,000 rials per dollar in Tehran exchange shops. This decline is attributed to ongoing geopolitical tensions and impacts from the U.S. withdrawal from the 2015 nuclear agreement.
During the impeachment process, Mohammad Qasim Osmani, a supportive lawmaker, contended that current economic challenges stem from a budget deficit inherited from the previous administration, rather than from Hemmati’s leadership. He highlighted external factors that have contributed to a lack of public confidence, prompting citizens to convert their savings into foreign currencies, thereby accelerating the rial’s depreciation.
Despite acknowledging the difficulties faced during his short term, Hemmati reported a 10% reduction in inflation but recognized that the ongoing inflation rate remained high at 35%. He assured members of Parliament that efforts are being made to rectify the economic situation, although he cautioned that improvements would require time. This incident reflects the broader political and economic turmoil Iran continues to experience within its governmental framework and its relations with the external world.
The dismissal of Iran’s Minister of Economy underscores the significant financial challenges facing the nation, primarily attributed to the steep decline of the rial and prolonged economic mismanagement. Lawmakers have highlighted inherited budget issues from prior administrations as contributing factors to the current crisis. Hemmati’s acknowledgment of high inflation, despite a slight reduction, indicates the complexity of Iran’s economic landscape and the pressing need for comprehensive solutions moving forward.
Original Source: m.economictimes.com
