Bangladesh Bank: What happens throughout the Day over governor’s appointment, departure

The departure of Bangladesh Bank governor Ahsan H Mansur was not pleasant. In the days leading up to the cancellation of his appointment, officers of Bangladesh Bank staged protests against him. Subsequently, today, Wednesday, his appointment was canceled, and Md Mostaqur Rahman was appointed as the new governor.

Mostaqur Rahman is a businessman and accountant by profession. This marks the first time in the country that a businessman has been appointed as a governor.

Throughout the day, there was tension at the central bank, and additional police were deployed.

Wednesday morning, Bangladesh Bank officials held a protest rally demanding the fulfillment of various demands and the withdrawal of show-cause and transfer orders for three officers. The rally announced that if these demands were not met, officers and employees would go on pen-down strike from tomorrow, demanding the governor's resignation.

In protest against the ''autocratic'' behaviour of Governor Ahsan H Mansur, the Bangladesh Bank Officers' Welfare Council organised a protest meeting involving officials and employees from all levels of the organisation.

In the protest meeting, Bangladesh Bank Director and Assistant Spokesperson Shahriar Siddiqui said, "We wanted autonomy for Bangladesh Bank, but we received autocracy. We do not wish to remain under this autocracy. We went to the governor with some legitimate demands multiple times, but he did not pay them any heed. Instead, he resorted to suppression and persecution."

Shahriar Siddiqui mentioned, "The bank has been filled with contractual appointments. He (the governor) needs many advisors and consultants, but we haven’t seen any effective policy being adopted for the economy. He continually questions the competence of Bangladesh Bank officials, breaking their morale. Moreover, his comments regarding the banking sector have negative impacts."

At this time, Shahriar Siddiqui demanded the withdrawal of the show-cause and transfer orders and called for everyone to be issued such orders if not withdrawn.

Bangladesh Bank Executive Director and Deputy Head of BFIU Mofizur Rahman Khan Chowdhury said, "We have been raising legitimate demands to the governor for the past seven to eight months, but he has not accepted them. We hope that he will accept our just demands. No unjust demands have been made."

Officers' Welfare Council President Masum Billah said, "The governor has taken various autocratic measures, which we strongly condemn. Yesterday, before our three colleagues could respond to their show-cause notices, they were transferred."

He also said, "We demand the implementation of our demands, including the withdrawal of show-cause notices and transfers, by today. If not implemented, we will start a symbolic pen-down strike from tomorrow."

In protest against various decisions of Bangladesh Bank and calling Governor Ahsan H Mansur a ''dictator,'' three officials of Bangladesh Bank were transferred outside Dhaka eight days ago, following show-cause notices issued on Monday.

After the officers' protest meeting, Ahsan H Mansur held an impromptu press conference and said that some officials, driven by vested interests, are tarnishing the institution's reputation.

He said that officials must comply with the central bank's service rules and that any deviation would result in action.

The governor emphasised the necessity of maintaining institutional discipline, especially when the sector is undergoing structural reforms.

He outlined that the driving force of the current administration is the strategic effort to protect depositors and recover distressed banks.

The governor stated that it is a strategic and mandatory responsibility of the central bank to prevent distressed banks from becoming insolvent and to maintain overall market stability. Financial assistance is not directed at a single bank but is part of a broader effort to maintain public confidence in the sector.

The governor reaffirmed his commitment to strengthening struggling banks financially, ensuring public tax money and deposits are used in public interest only.

After the press conference at Bangladesh Bank by Ahsan H Mansur, discussions began about appointing a new governor.

Ahsan H Mansur subsequently went home, and as he left, officials bade him farewell.

Following this, a group of central bank officials formed a 'mob' and expelled the governor's advisor Ahsan Ullah.

They chanted slogans and attempted to physically confront him. The central bank's Additional Director Tauhidul Islam led the effort to place Ahsan Ullah into a car.

Former economic advisor Salehuddin Ahmed told Prothom Alo about the entire situation, emphasising that sudden changes at the governor's level send the wrong message and that Ahsan H Mansur had performed well during his tenure.