Iran’s Economy Minister Ousted Over Economic Mismanagement and Currency Crisis
The vote saw 182 lawmakers in favor of the no-confidence motion, while 89 voted against it. T
Tehran – Iran’s parliament has voted to remove Economy Minister Abdolnaser Hemmati from office following a no-confidence motion on Sunday. Hemmati’s ousting comes amid criticism over his handling of the country’s economy and the significant depreciation of the Iranian rial.
The vote was held almost eight months after President Masoud Pezeshkian appointed Hemmati to his position. Under his leadership, Iran’s national currency has lost nearly half of its value against the US dollar, with the rial now trading at 927,000 to the dollar, compared to 595,500 in August 2024.
Opponents of Hemmati in parliament argued that he had failed to control rising prices for basic goods, including food, medicine, and housing. Additionally, they criticized his inability to manage the foreign exchange market, which has contributed to the currency crisis. Some lawmakers also disapproved of Hemmati’s focus on ending US sanctions and removing Iran from the Financial Action Task Force’s blacklist, preferring a strategy that would focus on neutralizing the effects of sanctions.
Hemmati’s supporters, however, contended that it was not the right time to replace the economy minister, given the ongoing US sanctions. They warned that his removal could further destabilize the already struggling economy.
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The vote saw 182 lawmakers in favor of the no-confidence motion, while 89 voted against it. The ousting of Hemmati highlights the growing discontent over Iran’s economic challenges, which have been a source of public unrest since 2017, particularly among the lower and middle-income populations.
The move comes amid increasing pressure from the US, which has reimposed stringent sanctions targeting Iran’s oil exports as part of its “maximum pressure” campaign.
