Bangladesh Bank in Sudden Leadership Shift

Bangladesh’s central bank was thrown into uncertainty on Wednesday as reports emerged that its governor, Ahsan H. Mansur, had been removed from office, while the government moved to appoint Mostakur Rahman as his successor. For the first time, a businessman has been appointed governor of the Bangladesh Bank. Earlier this week, the Financial Institutions Division of the Ministry of Finance issued a notification confirming Mostakur Rahman FCMA as the new governor for a four-year term under Article 10(5) of the Bangladesh Bank Order, 1972. The order stated that he must sever ties with all other professional affiliations before assuming office, and that his salary and benefits would be determined under a contractual agreement with the government. The appointment was declared effective in the public interest. Yet events at the central bank headquarters suggested a more turbulent transition.

Dr. Mansur was seen leaving the Bangladesh Bank premises amid mounting speculation that he had been relieved of his duties. When approached by journalists, he appeared uncertain about his status.

‘I am hearing about it, but I know nothing,’ he said. Asked whether he had resigned or been removed, he replied tersely: ‘I know nothing. But I have heard that I am no longer there.’

Sources familiar with the matter said the process to appoint a new governor had already begun. Officials at the finance ministry and the central bank indicated that a proposal had been sent to the prime minister’s office for approval, with a final decision expected as early as Wednesday.

The upheaval follows reports that Ahsan Ullah, an adviser to Dr. Mansur, was compelled to leave the central bank compound by a group of officials on Wednesday afternoon. Witnesses said around 30 officials gathered inside the premises and pressured him to vacate his office in the presence of the governor.

He was later escorted to a vehicle and left the area. The episode was reportedly led by Additional Director Touhidul Islam, with several senior officers present.

The abrupt developments mark a delicate moment for Bangladesh’s monetary authority, which plays a central role in safeguarding financial stability and steering policy amid persistent economic pressures.

While the government has formally confirmed the appointment of Mostakur Rahman, it has yet to provide a detailed public explanation regarding Dr. Mansur’s reported removal or the circumstances surrounding the internal confrontation.

Finance Minister Amir Khasur Mahmund explained that the change reflects the priorities, plans, and policy agenda of the new government. He noted that similar administrative adjustments have taken place across multiple levels of government, with further changes possible in the future. The minister described the reshuffle as a routine process, necessary for implementing the government’s broader economic and regulatory objectives.

The transition at Bangladesh Bank comes amid broader concerns about institutional stability and market confidence. Analysts note that Rahman, who has a background in business and finance, will face immediate challenges in maintaining cohesion within the central bank while overseeing monetary policy amid ongoing macroeconomic pressures.

For the incoming governor, the immediate challenge will be twofold: restoring institutional cohesion within the central bank and reinforcing confidence in Bangladesh’s financial governance at a time when stability is paramount.

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