President May Get Power to Appoint BB Governor

File photo: Bangladesh Bank

A draft amendment to the Bangladesh Bank Order 1972 proposes sweeping changes to the central bank’s governance structure, including transferring the authority to appoint the governor from the government to the President and extending the governor’s tenure.

According to a senior Bangladesh Bank official, the proposed Bangladesh Bank Ordinance (Amendment) seeks to enhance the institution’s autonomy by reforming key appointment procedures and upgrading official ranks.

At present, the prime minister appoints the governor without requiring the president’s consent. Under the draft, the President would make the appointment in consultation with the prime minister, with an additional provision for parliamentary approval.

Other proposed reforms include revising the oath-taking procedure for senior officials and elevating the status of the governor and deputy governors.

The amendment also seeks to lengthen the governor’s tenure from the current four years to six, aiming to provide greater continuity and stability in central bank leadership.

Bangladesh Bank Governor Ahsan H Mansur recently stated that the planned reforms are intended to strengthen the bank’s authority and independence, shielding it from political influence.

Central bank spokesperson Areif Hossain Khan confirmed that the draft has been prepared, noting that the final content will only be known once the ordinance is issued.

If enacted, the changes would mark one of the most significant overhauls of the central bank’s governance since its establishment in 1972, potentially reshaping its role and authority in the country’s financial system.