Iran’s parliament voted on Sunday to impeach and remove Finance Minister Abdolnasser Hemmati from office after the national currency, the rial, plunged to nearly one million to the US dollar.
Hemmati’s dismissal comes amid mounting concerns over the currency’s sharp decline and accusations of economic mismanagement, just six months into President Masoud Pezeshkian’s administration.
Defending his minister, Pezeshkian emphasized that his government is engaged in a difficult struggle with Western nations and urged Parliament to show unity in tackling the country’s economic challenges.
The decision comes as tensions over Iran’s nuclear program escalate and relations with the West deteriorate further. The economy has suffered severe blows from international sanctions, particularly after the US withdrew from the 2015 nuclear deal.
In 2015, the rial traded at 32,000 to the dollar, but by the time Pezeshkian took office in July, it had fallen to 584,000. More recently, the currency weakened even further, with exchange shops in Tehran selling dollars for 930,000 rials. According to a post on X by Steve Hanke, Professor of Applied Economics at Johns Hopkins University, the Iranian rial is now the third worst-performing currency in the world.
During the impeachment debate, lawmaker Mohammad Qasim Osmani defended Hemmati, arguing that the rising inflation and currency depreciation were not the fault of the current administration or Parliament. He pointed to the budget deficit inherited from the previous government and recent geopolitical events as key drivers of economic instability. Osmani noted that many Iranians, fearing further devaluation, have converted their savings into foreign currency, exacerbating the rial’s decline.
Hemmati acknowledged the country’s economic difficulties during his five-month tenure, citing a 10% reduction in inflation. However, he admitted that inflation remains high at 35% and stressed that tackling the crisis would take time.
This latest development marks another chapter in Iran’s ongoing economic and political turmoil as the nation struggles to manage its financial crisis while facing external pressure from the international community.
