Ahsan Mansur's removal: 'Future appointees may think twice before stepping into such roles'
There is no denying that a government has the authority to reshuffle leadership wherever it deems necessary
What message does this episode send?
At the time of his removal, the banking sector was undergoing structural reform. The exchange rate had stabilised to some extent, foreign reserves had increased moderately, and remittance inflows were on the rise.
Beyond these indicators, Ahsan H Mansur had also initiated internal structural changes within the central bank itself. He brought in a team of capable young professionals — energetic, competent and reform-minded — and under his leadership, both the central bank's operations and the broader monetary framework began to show visible shifts.
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He took several bold and, at times, risky decisions. That was his contribution. Whether one agrees with every decision or not, such efforts could have been acknowledged. Instead, the manner of his departure has been deeply unfortunate. It provides a discouraging signal, that even competent individuals who take on difficult responsibilities may not be treated with due institutional respect. In the long run, capable professionals may feel hesitant to accept such positions.
There is no denying that a government has the authority to reshuffle leadership wherever it deems necessary. But the removal of Dr Mansur from such a prestigious and sensitive post did not appear amicable or dignified. A more graceful transition would have strengthened institutional culture.
Just a day before his removal, he reportedly held a meeting with the new finance minister, a meeting that gave no indication of what was to follow. After addressing a press conference the next day, he learned through media reports that he was no longer governor. At the very least, he could have been formally informed beforehand. Institutional courtesy matters, especially at that level.
This raises a broader concern: What message does this send to future appointees? If experts are invited to undertake difficult reforms but see that departures can occur in an undignified manner, some may think twice before stepping into such challenging roles — particularly during times of crisis.
It is important to remember that Dr Mansur assumed responsibility during a very difficult period, under challenging economic circumstances. He made bold decisions that were not always easy or popular. Those contributions deserved recognition.
At the same time, no one disputes the urgent need for continued reform in the financial sector. Expectations from the new governor, Mostaqur Rahman, will naturally be high. There is hope that he will maintain continuity in the reform process and carry forward the unfinished agenda. The financial sector remains distressed, and helping it regain stability will be a formidable task.
Several major challenges lie ahead. The reform programme linked to the International Monetary Fund must continue. Amendments to the Bangladesh Bank Order and the question of strengthening central bank autonomy remain pending. The process of merging weak banks and financial institutions must move forward carefully. Inflation control will also remain a pressing concern — though in Bangladesh's context, monetary policy alone cannot shoulder that burden.
Given the current economic landscape, the position of Bangladesh Bank governor is undoubtedly a hot seat. The next governor will not only have to pursue reforms but also navigate pressures from influential quarters. The coming months will reveal whether reform momentum is sustained — and whether institutional strength ultimately prevails over competing interests.
Zahid Hussain is a former lead economist at the World Bank's Dhaka office.
