Iran’s Parliament Dismisses Economy Minister Amid Economic Crisis

Iran’s parliament impeached Finance Minister Abdolnasser Hemmati on March 2, 2025, due to concerns over the declining rial and alleged mismanagement. The vote followed significant inflation and currency devaluation since the U.S. exited the 2015 nuclear deal. Amidst heightened geopolitical tensions, lawmakers expressed divergent views on the causes of the crisis, implicating past administrations and external pressures.

On March 2, 2025, Iran’s parliament voted to impeach Finance Minister Abdolnasser Hemmati, citing serious concerns regarding the crashing rial and allegations of mismanagement. The dismissal was supported by 182 out of 273 lawmakers, occurring just six months after President Masoud Pezeshkian’s administration took office. President Pezeshkian defended Hemmati, emphasizing the government’s struggle against external pressures and urging parliamentary unity to tackle these challenges.

The impeachment decision unfolds amid escalating tensions surrounding Iran’s nuclear program and deteriorating relations with Western nations. The Iranian economy has suffered significantly due to international sanctions, particularly following the U.S. withdrawal from the 2015 nuclear accord. In 2015, the rial’s value was 32,000 to the dollar; by Pezeshkian’s inauguration in July, it had fallen to 584,000, with recent trading indicating a drop to as low as 930,000 rials per dollar.

During the impeachment discussion, supportive lawmaker Mohammad Qasim Osmani argued against equating the rising inflation and exchange rates with the current administration’s actions. He criticized the budget deficit inherited from the previous government as a contributing factor to economic turmoil and noted recent geopolitical dynamics that have eroded public confidence, prompting a shift towards foreign currency holdings, which further weakened the rial.

Hemmati acknowledged the challenging economic landscape, citing a 10% decrease in inflation under his leadership, while admitting that the inflation rate still stands at 35%. He assured parliament members of his dedication to improving the economic situation, although he indicated that significant progress would necessitate time.

The impeachment of Finance Minister Abdolnasser Hemmati underscores the growing economic challenges faced by Iran, including a plummeting rial largely attributed to mismanagement and external sanctions. Despite government assurances of progress in stabilizing the economy, the significant devaluation of the currency continues to raise public concern and dissatisfaction. The incident highlights the critical intersection of political and economic issues within Iran’s current governmental landscape.

Original Source: apnews.com