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Iran’s parliament voted on Sunday to impeach Finance Minister Abdolnasser Hemmati, removing him from office as the country faces a worsening economic crisis. Lawmakers blamed him for the rapid decline of the rial, which is nearing one million per US dollar. The decision reflects growing frustration over financial instability and inflation, which have made daily life increasingly difficult for Iranians.

Government Under Pressure

President Masoud Pezeshkian defended Hemmati, saying that Iran’s economic troubles are largely due to Western sanctions. He urged lawmakers to work together instead of assigning blame. However, his plea did not sway parliament, which accused Hemmati of financial mismanagement and failure to stabilize the economy.

Iran’s economy has struggled under heavy sanctions, particularly since the United States withdrew from the 2015 nuclear deal. With inflation soaring and the currency in freefall, the government faces mounting pressure to implement urgent reforms. Public anger is growing, with protests erupting over high prices and declining living standards.

The Rial’s Decline

The rial’s collapse has been dramatic. In 2015, it traded at 32,000 per US dollar. When Pezeshkian took office in July, it had fallen to 584,000 per dollar. In recent weeks, it plunged further, with exchange shops in Tehran offering 930,000 rials per dollar.

Steve Hanke, an Applied Economics professor at Johns Hopkins University, noted that Iran’s currency is now one of the three worst-performing in the world. The rapid decline underscores deep instability, leaving businesses and ordinary citizens struggling to cope with rising costs.

A History of Economic Struggles

Iran’s economic troubles did not start overnight. Years of mismanagement, corruption, and sanctions have taken a heavy toll. After the U.S. pulled out of the nuclear deal in 2018, Washington reimposed sanctions on Iran’s oil exports and banking sector, cutting off crucial revenue sources. The COVID-19 pandemic further weakened the economy, and political instability has made recovery even harder.

Hemmati, who previously served as head of Iran’s central bank, was tasked with stabilizing the financial system. However, critics say his policies failed to stop inflation and currency devaluation. Some lawmakers argue that removing him is only a symbolic move unless broader reforms follow.

Growing Public Frustration

As prices continue to rise, many Iranians are struggling to afford basic goods. Food, rent, and medicine costs have soared, pushing more people into poverty. Small businesses are also feeling the impact, as the cost of imports rises and consumer spending shrinks.

The government has attempted to control the crisis by cracking down on currency speculation and limiting the amount of foreign currency individuals can hold. However, these measures have done little to restore confidence in the economy.

In recent months, there have been reports of protests in several cities. Demonstrators have voiced frustration over economic hardships, corruption, and a lack of government action. Some experts warn that without serious reforms, unrest could grow, creating further instability.

The Road Ahead

With Hemmati’s removal, the Iranian government must now appoint a new finance minister who can restore economic stability. The challenge will be enormous, as the government faces limited options for addressing inflation and currency devaluation. Some lawmakers are pushing for fresh negotiations with the West to ease sanctions, while others demand stronger domestic policies to boost production and reduce reliance on foreign imports.

Meanwhile, the international community is closely watching Iran’s next steps. The ongoing nuclear dispute has further complicated the economic crisis, with Western countries wary of lifting sanctions without strict conditions.

For now, Iranians will continue to feel the effects of the country’s economic troubles. Whether the government can turn things around remains uncertain. One thing is clear: without major changes, Iran’s financial struggles are far from over.

For more updates on global financial news, visit Financial Mirror.