The Iranian parliament took decisive action on Sunday by impeaching the nation’s finance minister, a move that underscored the mounting anxiety over the devaluation of the rial and accusations of economic mismanagement. This decision saw a significant parliamentary vote, with 182 out of 273 lawmakers opting to remove Abdolnasser Hemmati from his position. The impeachment comes a mere half-year into President Masoud Pezeshkian’s administration.
In response to the ousting, President Pezeshkian defended Hemmati’s efforts and underscored the government’s ongoing battles with Western nations. He appealed for unity and collaboration within Parliament to effectively confront these mounting challenges. Although Pezeshkian attempted to rally support, the dismissal reflects growing discontent across the country.
The backdrop to this political shake-up is a fraught international environment, characterized by escalating tensions over Iran’s nuclear activities and deteriorating relations with Western countries. The Iranian economy is reeling from the weight of international sanctions, which intensified significantly following the U.S. exit from the 2015 nuclear accord. The rial’s descent is stark; back in 2015, 32,000 rials matched the U.S. dollar, but by July of Pezeshkian’s inaugural year, the figure plummeted to 584,000. More recently, reported exchange rates in Tehran have spiraled to 930,000 rials per dollar.
The impeachment proceedings featured outspoken arguments, particularly from Mohammad Qasim Osmani, a lawmaker who supported Hemmati. Osmani contended that the current economic woes, particularly the escalation of inflation and exchange rates, should not be blamed on the present government or parliament. He argued that these issues stemmed from the previous administration’s budget deficit and were exacerbated by recent geopolitical developments. These factors, he claimed, have eroded public trust and prompted citizens to convert their savings into foreign currencies, weakening the rial even further.
Despite these challenges, Hemmati highlighted his efforts during his brief tenure to tackle inflation, citing a 10% reduction. Nevertheless, he acknowledged the ongoing economic distress, with inflation still at a daunting 35%. Hemmati assured lawmakers of his team’s dedication to rectifying the situation but cautioned that these changes necessitate time.
This recent impeachment adds yet another layer to Iran’s ongoing saga of political and economic turbulence as the nation seeks to navigate its complex international ties and domestic hurdles.
