Bangladesh Bank has issued a stern warning to the public against purchasing assets related to S Alam Group, as the central bank plans to sell these properties to recover funds for depositors.
Speaking at a press conference at the central bank headquarters on Wednesday, Governor Dr. Ahsan H. Mansur emphasized that the priority is to recover looted bank money to reimburse depositors.
Bangladesh Bank has already suspended all transactions involving S Alam Group, including those of associated individuals and institutions. In response, the company is reportedly attempting to offload various land assets. A legal process is required to prevent the sale of these assets. “For the sake of the state,” the central bank governor advised against buying land and properties from S Alam Group.
Dr. Mansur also announced that the boards of six banks have been reconstituted to ensure better governance, with more changes expected soon. These new boards will run the banks as representatives of the state. If they do not perform adequately, further replacements will be made, he added.
On the inflation front, the governor highlighted that due to recent major flooding in the country, inflation is unlikely to decrease over the next two to three months. “However, I am optimistic that inflation will drop in the next 6 to 8 months. Controlling inflation requires efforts on both sides: appropriate policy measures from Bangladesh Bank and maintaining a stable supply chain. We have taken maximum action on behalf of the central bank. If supply normalizes, inflation will start to decline,” he explained.
Regarding the foreign exchange reserve, Dr. Mansur clarified, “Not a single dollar will be sold from the Bangladesh Bank’s reserves. However, we are collecting dollars from the market and supplying them to banks like Sonali to cover government payments.” He further elaborated that the focus is on managing dollar demand for crucial payments, including Letters of Credit (LCs), electricity debt, and fertilizer imports.
Addressing concerns from depositors, the governor urged patience, warning against mass withdrawals. “If everyone withdraws money simultaneously, no bank in the world could handle it. Only withdraw what is necessary,” he advised.
Dr. Mansur also reassured depositors of struggling banks that reforms are underway and improvements will take time. “You kept money in these banks either for higher interest rates or other reasons. Now, there is no need to rush to withdraw your money. Withdraw only what you need,” he suggested, emphasizing a gradual approach to withdrawals to maintain stability.