Iran’s Parliament Dismisses Finance Minister Amid Currency Crisis

Iran’s Parliament has dismissed Finance Minister Abdolnaser Hemmati amid soaring inflation and the sharp decline of the Iranian rial. With 182 lawmakers voting for his removal, the action underscores growing economic challenges. Currently, the rial trades at over 920,000 per US dollar after significant depreciation, particularly since the reintroduction of US economic sanctions.

On Sunday, Iran’s Parliament took decisive action by voting to dismiss Finance Minister Abdolnaser Hemmati, as reported by state-run television. This vote of no confidence occurred amidst soaring inflation and a drastic decline in the national currency. Hemmati, who had served for nearly eight months under President Masoud Pezeshkian’s administration, faced removal by a significant majority, with 182 out of 273 lawmakers supporting the dismissal.

According to Iran’s constitution, Hemmati’s removal is immediately effective, prompting the appointment of an acting finance minister until the government designates a permanent successor. The Iranian rial has witnessed a troubling depreciation, currently trading on the black market at over 920,000 rial per US dollar. This is a stark contrast to previous rates of under 600,000 in 2024 and just 32,000 in 2015.

The sharp decline of the rial can be attributed to economic pressures which intensified following the implementation of US President Donald Trump’s “maximum pressure” policy against Iran. This has significantly affected the nation’s economic stability and the purchasing power of its citizens. The financial environment remains tense as the new acting minister prepares to confront these ongoing challenges.

In summary, the ousting of Finance Minister Abdolnaser Hemmati by Iran’s Parliament reflects the government’s response to the current economic crisis characterized by hyperinflation and currency depreciation. As the rial continues to plummet, the newly appointed acting finance minister will face the arduous task of restoring confidence and stabilizing the Iranian economy, which has been further strained by external pressures.

Original Source: shafaq.com