The economic minister of Iran has been ousted from his position following a vote by the parliament due to a surge in inflation and a decline in the country’s currency value.
Abdolnasser Hemmati was removed from his post after 182 out of 273 lawmakers voted against him, as announced by parliament speaker Mohammad Bagher Ghalibaf on Sunday. This decision came just six months after President Masoud Pezeshkian’s government came into power.
In 2015, the Iranian rial was valued at 32,000 to the US dollar, but by the time Pezeshkian assumed office in July, it had dropped to 584,000 rials to the dollar. Recently, the exchange rate plummeted even further, with currency exchange shops in Tehran offering over 940,000 rials for a dollar. This depreciation of the rial has caused widespread discontent among the public due to a rise in living costs and increased inflation.
President Pezeshkian, who was present during the parliamentary session, defended Hemmati, a former central bank governor and presidential candidate. He stated that the country is currently facing an economic war and urged for unity in tackling the challenges.
During the impeachment proceedings, lawmakers debated the reasons behind the economic instability, with some pointing to the budget deficit left by the previous administration. Hardline lawmakers accused Hemmati of intentionally devaluing the currency to manipulate government funds and cover budget shortfalls at the expense of the economy.
Hemmati defended his tenure by highlighting a 10% reduction in inflation during his time in office, but acknowledged that inflation rates still remained high at 35%. He emphasized the ongoing challenges facing Iran’s economy and the impact of external factors, such as the US withdrawal from the nuclear deal.
The vote against Hemmati marks the first major blow to President Pezeshkian’s government by hardline lawmakers. However, it is expected that Hemmati will continue to have a role in the government as a special advisor to the president.
The economic challenges in Iran are further compounded by local mismanagement, corruption, and decades of sanctions imposed by the US. The ongoing threats from US and Israeli officials regarding Iran’s nuclear program have also contributed to the economic instability in the country.
