Iranian parliament votes to impeach Economy Minister

The Iranian parliament voted overwhelmingly to impeach Economy Minister Abdolnaser Hemmati.

The impeachment followed intense speculation, with 182 out of 273 lawmakers voting against Hemmati, while 89 supported him, and one lawmaker abstained, with another vote deemed invalid.

During the impeachment session, Iranian President Masoud Pezeshkian addressed the parliament, urging lawmakers to support Hemmati in addressing the nation’s pressing economic challenges. In his impassioned speech, he acknowledged the difficulties faced by the Iranian people and emphasized that “unity and solidarity” are crucial for overcoming the ongoing crisis.

Pezeshkian described the current economic turmoil as “worse than the eight-year war with Iraq” in the 1980s, stressing that the nation is involved in a “full-scale [economic] war with the enemy.”

Since assuming the presidency in July 2024, following the tragic death of former President Ebrahim Raisi in a helicopter crash, Pezeshkian has vowed to lift sanctions through diplomatic efforts with the West and revitalize the struggling economy. However, these ambitions have been hampered by the reelection of Donald Trump in the US, alongside opposition from Iran's Supreme Leader, Ayatollah Ali Khamenei, to negotiations with Trump.

As Iran faces escalating economic difficulties, inflation has soared in recent months, and the national currency, the rial, continues to experience a drastic decline. For the first time last month, the rial exceeded 940,000 against the dollar, a sharp drop from 600,000 in October of the previous year and an astonishing 40,000 in early 2018, prior to Trump’s withdrawal from the Iran nuclear deal and the reinstatement of sanctions. Currently, the rial trades at over 920,000 to the dollar in the open market.

Hemmati, who previously held the position of Iran’s top banker and was a presidential candidate, defended his record as economy minister during the impeachment proceedings, claiming that the Pezeshkian administration had a solid plan in place to revive the economy. Nevertheless, his arguments failed to persuade lawmakers, who proceeded with his impeachment.

The grounds for impeachment were based on ten significant issues, including allegations of mismanagement in the foreign exchange and gold markets, inappropriate allocation of foreign currency for essential goods and medicines, and the depreciation of the national currency. Additionally, lawmakers cited Hemmati’s performance in managing stock market regulation, free trade zones, customs, and banking as further justification for their actions.

With Hemmati's removal, the Pezeshkian administration will now need to nominate a new economy minister, who will require the approval of parliament in a vote of confidence.