Tuesday, 26 August, 2025
A draft amendment to the Bangladesh Bank Ordinance has been prepared, proposing major reforms to the Bangladesh Bank Order 1972 — including transferring the authority to appoint the central bank governor from the government to the President and extending the governor’s tenure from four to six years.
The proposed changes aim to grant the central bank constitutional status, greater independence, and protection from political interference.
A senior central bank official, speaking on condition of anonymity, said the reforms are designed to strengthen Bangladesh Bank’s autonomy by overhauling the appointment process and revising key provisions of the law.
Under the existing 1972 order, the government has the power to appoint the governor and one or more deputy governors, with the prime minister able to make such appointments without the President’s consent. The draft amendment would require the President to appoint the governor in consultation with the prime minister, with parliamentary approval also proposed.
Other provisions include revising the oath-taking process and upgrading the official ranks of the governor and deputy governors.
The Bangladesh Bank Ordinance (Amendment) 2025 — which would replace the 1972 order — follows IMF-backed recommendations to bolster the bank’s autonomy, accountability, and resilience.
Speaking at a recent programme on banking law reforms, Bangladesh Bank Governor Ahsan H Mansur said the amendments are intended to strengthen the central bank’s authority and insulate it from political influence.
Bangladesh Bank spokesperson Areif Hossain Khan confirmed the draft’s preparation, noting that the final content will be known only once the ordinance is issued.
The push for central bank independence has long been supported by economists and international lenders, including the IMF and World Bank, who argue that sound financial governance must remain above political pressures to ensure a stable and effective financial sector.
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A draft amendment to the Bangladesh Bank Ordinance has been prepared, proposing major reforms to the Bangladesh Bank Order 1972 — including transferring the authority to appoint the central bank governor from the government to the President and extending the governor’s tenure from four to six years.
The proposed changes aim to grant the central bank constitutional status, greater independence, and protection from political interference.
A senior central bank official, speaking on condition of anonymity, said the reforms are designed to strengthen Bangladesh Bank’s autonomy by overhauling the appointment process and revising key provisions of the law.
Under the existing 1972 order, the government has the power to appoint the governor and one or more deputy governors, with the prime minister able to make such appointments without the President’s consent. The draft amendment would require the President to appoint the governor in consultation with the prime minister, with parliamentary approval also proposed.
Other provisions include revising the oath-taking process and upgrading the official ranks of the governor and deputy governors.
The Bangladesh Bank Ordinance (Amendment) 2025 — which would replace the 1972 order — follows IMF-backed recommendations to bolster the bank’s autonomy, accountability, and resilience.
Speaking at a recent programme on banking law reforms, Bangladesh Bank Governor Ahsan H Mansur said the amendments are intended to strengthen the central bank’s authority and insulate it from political influence.
Bangladesh Bank spokesperson Areif Hossain Khan confirmed the draft’s preparation, noting that the final content will be known only once the ordinance is issued.
The push for central bank independence has long been supported by economists and international lenders, including the IMF and World Bank, who argue that sound financial governance must remain above political pressures to ensure a stable and effective financial sector.
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