Iran’s Economy Minister Faces Impeachment as Inflation Soars and Currency Declines | Business and Economy News

Hemmati was removed from office after 182 out of 273 lawmakers voted against him.

Iran’s Minister of Economy has been impeached after Parliament voted to dismiss him from office amidst rising inflation and a declining currency.

Abdolnaser Hemmati was ousted after 182 out of 273 lawmakers voted against him on Sunday, announced by Parliament Speaker Mohammad Bagher Ghalibaf. This move comes just six months after President Masoud Pezeshkian’s government took office.

In 2015, the Iranian rial was valued at 32,000 to the US dollar. However, by the time Pezeshkian assumed office in July, it had plummeted to 584,000 to the dollar.

Recently, the currency fell even further, with exchange shops in Tehran trading 930,000 rials for one dollar. The devaluation of the rial has sparked widespread public discontent due to rising living costs and heightened inflation.

President Pezeshkian, who was present during Sunday’s session, defended Hemmati, a former central bank governor, telling lawmakers, “We are in a full-scale [economic] war with the enemy… we must take a war formation.”

He added, “The economic problems of today’s society are not related to one person, and we cannot blame it all on one person.”

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.

Hemmati acknowledged the challenging economic conditions during his five months in office, including a 10 percent reduction in inflation.

However, he admitted that inflation remained high at 35 percent. He told lawmakers his team was working hard to address the issue but warned that the process would take time.

The vote against Hemmati also marks the first time conservative MPs have moved against the centrist Pezeshkian, aiming to challenge and influence his government’s policies.

Decades of US-led sanctions have severely impacted Iran’s economy, with double-digit inflation causing a surge in consumer prices since Washington withdrew from the landmark 2015 nuclear deal in 2018.

US President Donald Trump, who returned to the White House in January, has revived his policy of “maximum pressure” on Iran, further tightening restrictions on the country.