Interim govt will not amend Bangladesh Bank Order to ensure full autonomy: Finance adviser
“Only a political government can take decisions on such matters,” he says.
The interim government will not implement the central bank's proposal to amend the Bangladesh Bank Order, 1972, to ensure full autonomy of Bangladesh Bank, including granting ministerial status to the governor, Finance Adviser Salehuddin Ahmed has said.
He made the remark in a letter sent to Bangladesh Bank Governor Ahsan H Mansur on 5 February, multiple officials at the Ministry of Finance confirmed the matter to The Business Standard.
In the letter, the finance adviser 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."
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Salehuddin also noted that decisions of this nature fall outside the mandate of an interim government. "Only a political government can take decisions on such matters," he wrote.
Earlier, the central bank proposed a draft amendment to replace the 1972 order with the Bangladesh Bank Ordinance 2025.
The draft, approved by the central bank's board, introduces major changes in key appointments, mandate, and financial management aimed at shielding the central bank from political influence.
The draft ordinance has been sent to the finance ministry to be placed before the Advisory Council for final approval, according to central bank officials.
Aligned with recommendations from the International Monetary Fund, the amendment seeks to strengthen the bank's independence and align its governance with global best practices. Under the draft, the president will 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 TBS that the new ordinance would give the governor and deputies full autonomy over monetary policy, as the Monetary Policy Committee will operate independently. "The governor will no longer owe loyalty to the political government, with appointment and dismissal decisions insulated from political influence, allowing them to act according to their mandate without fear of pressure."
Currently, the Bangladesh Bank Order, 1972, grants the government significant control over key appointments, raising concerns about undue influence. The proposed ordinance introduces robust safeguards to prevent political interference and strengthen the central bank's institutional autonomy.
