Iran's parliament fires minister of finance over plummeting rial, mismanagement

TEHRAN: Iran's parliament on Sunday impeached the country's finance minister and voted to remove him from office amid growing concerns over the crashing rial and accusations of mismanagement.

Parliament Speaker Mohammad Bagher Qalibaf announced that 182 out of 273 lawmakers voted to dismiss Abdolnasser Hemmati, just six months after President Masoud Pezeshkian's government took office.

Pezeshkian, who defended Hemmati, emphasized that the government is locked in a tough battle with the West. He called for greater unity and cooperation from Parliament to face these challenges.

The decision comes amid rising tensions over Iran's nuclear program and worsening relations with the West. Iran's economy has been severely affected by international sanctions, especially after the U.S. withdrew from the 2015 nuclear deal. In 2015, the rial was worth 32,000 to the dollar, but by the time Pezeshkian took office in July, it had plummeted to 584,000 to the dollar. Recently, it dropped even further, with exchange shops in Tehran trading 930,000 rials for each dollar.

During the impeachment proceedings, Mohammad Qasim Osmani, a lawmaker supporting Hemmati, argued that rising inflation and exchange rates were not the fault of the current government or Parliament. He pointed to the budget deficit left by the previous administration, which he said contributed to the economic instability. Osmani also cited recent geopolitical events as factors that undermined public confidence, causing many people to convert their savings into foreign currency, which in turn further devalued the rial.

Hemmati acknowledged the tough economic climate during his five months in office, including a 10% reduction in inflation. However, he acknowledged that inflation remained high, standing at 35%. He assured lawmakers that his team was working hard to address the issue, but warned that the process would take time.

This latest development is another chapter in Iran's ongoing political and economic struggles as the country continues to navigate a complex relationship with the international community.