Iran lawmakers sack minister over economic woes
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Iran's parliament dismissed the finance minister after impeaching him due to rising inflation and a rapidly depreciating currency, according to state television.
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Iranian Finance Minister Abdolnaser Hemmati delivers a speech in parliament during impeachment proceedings against him on March 1, 2025. (AFP)
Iran's parliament dismissed the finance minister on Sunday after he was impeached for high inflation and a falling currency, with 182 out of 273 lawmakers voting in favor of his removal.
On the black market, the Iranian rial was trading at over 920,000 to the US dollar, a sharp decline from less than 600,000 in mid-2024.
Earlier, President Masoud Pezeshkian defended Hemmati, a former central bank governor, arguing, "We are in a full-scale (economic) war with the enemy... we must take a war formation".
"The economic problems of today's society are not related to one person and we cannot blame it all on one person."
Lawmakers took turns fiercely criticizing Hemmati, holding him responsible for Iran's economic troubles.
One parliamentarian, Ruhollah Motefakker-Azad, argued, "People cannot tolerate the new wave of inflation; the rise in the price of foreign currency and other goods must be controlled." Another, Fatemeh Mohammadbeigi, said, "People cannot afford to buy medicine and medical equipment."
'Chronic inflation'
"The most important problem of the country's economy is inflation, and that is chronic inflation, which has plagued our economy for years," the economy minister added.
Decades of US-led sanctions have severely impacted Iran's economy, with double-digit inflation driving up consumer prices since the US withdrew from the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action, in 2018.
The deal had offered sanctions relief and the return of Western investment in exchange for stricter controls on Iran's nuclear activities.
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 Islamic Republic.
Since 2018, the Iranian economy has been burdened by high inflation, severe unemployment, and a devalued currency, impacting everyday Iranians.
In that year, Economy Minister Masoud Karbasian was impeached due to the worsening economic conditions. Inflation in Iran has remained above 30 percent annually since 2019, with a sharp increase to 44 percent in 2023, according to the World Bank.
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