In a significant political move, Iran’s parliament has ousted the nation’s economy minister due to his handling of the faltering rial and accusations regarding mismanagement. The decision was confirmed after a parliamentary session where Speaker Mohammad Bagher Qalibaf announced that 182 out of 273 legislators voted for the removal of Abdolnasser Hemmati. This vote occurred just half a year into President Masoud Pezeshkian’s administration.
Despite Hemmati’s dismissal, President Pezeshkian stood by him, asserting that the government is entangled in a difficult confrontation with Western powers. He appealed for increased unity and collaboration from parliamentarians to tackle these ongoing issues. This political shakeup transpires in the context of escalating tensions related to Iran’s nuclear initiatives and its deteriorating connections with Western countries. The Iranian economy continues to reel from profound impacts due to international sanctions, a situation intensified after the U.S. abandoned the 2015 nuclear agreement. Back in 2015, the rial was valued at 32,000 to the dollar, but it nosedived to 584,000 to the dollar by July when Pezeshkian assumed office. The situation has only worsened, with exchange shops in Tehran now offering 930,000 rials per dollar.
During the impeachment proceedings, lawmaker Mohammad Qasim Osmani, a Hemmati supporter, argued that inflation and unfavorable exchange rates were not directly attributable to the existing government or parliament. He blamed the budget deficit of the previous administration for contributing to the current economic woes. Osmani also highlighted recent geopolitical events that have eroded public trust, compelling citizens to convert their savings to foreign currency, hastening the rial’s depreciation.
Hemmati admitted the economic challenges faced during his brief tenure, noting a modest 10% decrease in inflation. Nevertheless, the inflation rate remains concerning at 35%. He reassured lawmakers that his administration was actively tackling the issue, but cautioned that improvements would require time.
This development is yet another episode in Iran’s ongoing saga of political and economic turbulence, as the country continues to navigate its multifaceted relationships with both domestic governance and the international sphere.
