Iran’s Parliament Dismisses Finance Minister Amid Currency Crisis

Iran’s Parliament has voted to remove Finance Minister Abdolnaser Hemmati due to concerns over the national currency’s sharp decline. The rial has depreciated significantly, trading at over 920,000 rials per US dollar. This change follows the reinstatement of U.S. sanctions which have severely impacted the Iranian economy.

Iran’s Parliament has officially dismissed Finance Minister Abdolnaser Hemmati due to his failure to manage the ongoing economic crisis, particularly the severe decline of the national currency. His removal was confirmed by state media, following a no-confidence vote wherein 182 of the 273 lawmakers supported his ousting. This outcome comes less than eight months after the inauguration of President Masoud Pezeshkian’s administration, highlighting the government’s struggles to stabilize the economy.

The Iranian rial has suffered a dramatic depreciation, trading on the black market for over 920,000 rials per US dollar, a stark contrast to its exchange rate of less than 600,000 in 2024, and 32,000 in 2015. This significant drop is primarily attributed to economic policies implemented after the United States reinstated stringent sanctions on Iran under former President Donald Trump. According to Iran’s constitution, Hemmati’s dismissal is effective immediately, and an acting minister has been appointed to manage the interim period until a new finance minister is designated by the government.

In summary, the dismissal of Finance Minister Abdolnaser Hemmati reflects the Iranian government’s ongoing challenges with economic instability and currency depreciation. The recent vote of no confidence from Parliament underscores growing frustrations regarding the handling of the nation’s fiscal crisis. As the rial continues to plummet, the need for effective leadership and economic reforms becomes increasingly urgent.

Original Source: shafaq.com