Iranian Parliament moves to dismiss Economy Minister

The Iranian Parliament initiated a procedure on Wednesday to dismiss Economy and Finance Minister Abdolnasser Hemmati, state television reported. The move comes as the national currency, the rial, faces a sharp depreciation against the US dollar.

According to Iranian law, a minister facing dismissal must appear before Parliament within ten days to defend themselves before a vote of confidence is held. 

The motion follows a closed-door meeting between President Massoud Pezeshkian and Hemmati, aimed at addressing the rapid deterioration of the country's economic situation.

The Iranian rial has been in freefall, a situation that has worsened since December, following the fall of Syrian President Bashar al-Assad, a key Iranian ally.

Before the change of power in Damascus, the black market exchange rate stood at 717,000 rials per US dollar, according to the foreign exchange tracking website AlanChand. 

By Wednesday in Tehran, the exchange rate had surged to approximately 925,000 rials per dollar, nearing an all-time record. When President Pezeshkian took office in July 2024, the black market rate was around 600,000 rials per dollar.

Iran has been grappling with a severe economic crisis since 2018, when the United States reimposed heavy sanctions following former President Donald Trump’s withdrawal from the Iran nuclear deal.

The agreement, signed in 2015, had promised sanctions relief and increased Western investments in Iran in exchange for greater oversight of Tehran’s nuclear program. 

Since then, inflation has soared, and the rial has continued its steady decline, significantly impacting the daily lives of Iranians.

Iran's Parliament has previously dismissed ministers amid economic turmoil. In April 2023, lawmakers removed then-Industry Minister Reza Fatemi Amin, blaming him for soaring prices linked to international sanctions.

With Iran’s currency crisis worsening, all eyes are now on whether Minister Hemmati will survive the parliamentary vote or if President Pezeshkian will be forced to appoint new leadership to stabilize the economy.