‘Govt won’t amend BB order to grant full autonomy’
Staff Reporter:
The interim government will not implement the central bank’s proposal to amend the Bangladesh Bank Order, 1972, to grant full autonomy to Bangladesh Bank or confer ministerial status on its governor, Finance Adviser Salehuddin Ahmed has stated.
In a letter sent to Bangladesh Bank Governor Ahsan H Mansur on 5 February, Salehuddin wrote, “Amending a fundamental law such as the Bangladesh Bank Order requires a cautious approach. Such changes demand detailed review and consultations with key stakeholders and experts.” Multiple officials at the Ministry of Finance confirmed the matter to the media.
He added that decisions of this nature fall beyond the mandate of an interim government, noting, “Only a political government can take decisions on such matters.”
Earlier, the central bank proposed replacing the 1972 order with the Bangladesh Bank Ordinance 2025. The draft, approved by the bank’s board, includes major reforms in key appointments, mandate, and financial management to shield the central bank from political influence.
The draft ordinance has been sent to the finance ministry for consideration by the Advisory Council.
Aligned with International Monetary Fund recommendations, the amendment aims to strengthen the bank’s independence and bring its governance in line with global best practices.
Under the proposal, the president would appoint the governor and deputy governors. While the initial draft had removed all government representatives from the board, the final version retains one, down from the current three.
Former deputy governor Muhammad A (Rumee) Ali told that the ordinance would give the governor and deputies full autonomy over monetary policy, with the Monetary Policy Committee operating independently.
“The governor will no longer owe loyalty to the political government. Appointment and dismissal decisions will be insulated from political influence, allowing them to act according to their mandate without fear of pressure,” he said.
Currently, the Bangladesh Bank Order, 1972, gives the government significant control over key appointments, raising concerns about undue influence.
The proposed ordinance seeks to introduce robust safeguards to prevent political interference and strengthen the central bank’s institutional autonomy.