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Tehran, Iran – President Hassan Rouhani has removed the head of Iran’s central bank, Abdolinasser Hemmati presidential candidate in the June 18 election.
The cabinet said in a statement on Sunday that Hemmati had suspended his candidacy “for having a sufficient presence in the central bank and fulfilling the governor’s key duties and responsibilities in sensitive areas of money and foreign currency.”
The cabinet voted to replace Hemmati with his replacement Akbar Komijani, who also replaced Hemmati at an economic meeting led by Rouhani on Sunday.
Komijani has been deputy governor for the past seven years and has two decades of experience at the central bank.
If they were not removed from office, Hemmati would run the central bank until 2023, after which the governor could be extended for another five-year term.
Ebrahim Raisi, who is considered a pioneer in the elections, remains at the head of the judiciary.
A veteran of Iran’s banking and insurance sectors and a former state television journalist, Hemmati took over the management of the central bank in July 2018, at a time when Iranian currencies, rials, were a huge success.
Riala was on the verge of collapse, as US President Donald Trump suspended Iran’s nuclear deal with world powers in May 2015, imposing harsh unilateral sanctions.
Hemmati’s predecessor, Valiollah Seif, became the target of judicial probes and several of his representatives were arrested. A senior prosecutor said earlier this month complaint has been given against Seif for “wasting” more than $ 30 billion and 60 tons of gold reserves.
But the rally continued its sharp devaluation under Hemmati, reaching a $ 320,000 mark against the U.S. dollar in the open market in October 2020, while changing hands for less than $ 40,000 before the Trump administration’s “maximum pressure” on Iran.
The current currency has partially recovered and the rate of about 210,000 per dollar strengthened in the last month conferences in Vienna they continue to restore the nuclear deal and remove U.S. sanctions. But it has since devalued again, reaching $ 240,000 on Sunday.
Dependent central bank
Iran’s central bank is suffering from a severe lack of independence from the government, and the printing of excess money has been one of the main factors driving gallant inflation over the past four decades.
Legislation to strengthen the independence of the regulator has been delayed in several parliaments for more than 10 years.
In this atmosphere, the presidential candidate Hemmati has sought to oppose the narrative according to critics, saying that he is one of the main culprits in the current economic difficulties with inflation of over 40 percent.
Earlier in the week, he said his reputation had been jeopardized by long-term exchange and monetary policies, and that the economic situation could have been much worse if he had not been in front of those who wanted to maintain the status quo.
In the election, which is expected to have a small number of voters among the public disillusionment, the candidate also said he wants to have a “silent majority” voice.
Hemmati was opposed to the controversial policy launched by the Rouhani administration in 2018 to “forcefully unify” the country by setting an artificial rate of 42,000 reais per dollar. multiple exchange rates. This rate continues to this day, but is only used for imports of essential goods.
But he shares the same opinion of Rouhani and his moderate administration on a number of issues, most notably the need for financial restraint. transparency Legislation to complete Iran’s action plan with the intergovernmental watchdog, Financial Action Group.
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