United News of Bangladesh

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday called for urgent legal reforms to shield the country’s banking system from political interference, stressing that institutional independence is essential to prevent future financial irregularities. Speaking at a roundtable discussion titled ‘Impact of LDC Graduation on Banking Sector’ in Banani, Dr. Mansur highlighted a proposal to amend the Bangladesh Bank Order, submitted to the government four months ago, which he said is critical for modernizing the central bank’s regulatory framework. “It is regrettable that the amendment has not yet seen the light of day. To prevent political meddling in the future, this approval is essential. We need a modern central banking system backed by law,” he said. Read More: Bangladesh Bank reports 11% non-performing loans; actual figure is 25%: Dr Ahsan H Mansur Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition to manage economic challenges, the governor rejected such calls, citing Bangladesh’s strong performance across development indicators. “We should not compare Bangladesh with countries like Somalia, South Sudan, or Afghanistan. Every development index, including GDP, shows we are far ahead. Staying in the LDC group is not a matter of honor for us anymore. The nation’s goal should be to join the ranks of developing countries like Malaysia or India to gain global respect. We cannot sacrifice long-term gains for minor, short-term benefits.” The governor also criticised the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for past inaction during episodes of money laundering and the controversial ‘6–9 percent’ interest rate cap. Read More: Bangladesh Bank reverses policy, allows depositors of merged banks to earn profits “Business organisations have behaved like puppets in the past. They cheered for the 6–9 percent interest rate and remained silent when money was being siphoned out of the country. Democracy can never be strengthened if such behavior continues,” Dr Mansur said. During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, expressed concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have already resulted in 1.2 million job losses, with another 1.2 million potentially at risk in the next six months. Dr Mansur acknowledged that interest rates are high but attributed the situation to $20 billion being siphoned out of the country, which contributed to a rise in non-performing loans (NPLs). He said once governance improves and inflation is brought under control, interest rates are expected to ease. The International Chamber of Commerce, Bangladesh (ICCB) organised the event, with its president Mahbubur Rahman moderating and economic analysts, policymakers and business leaders in attendance.

Prime Minister Sheikh Hasina on Wednesday (January 04, 2023) asked the expatriate Bangladeshis not to send money home through the hundi, a cross-border money transfer method that bypasses the legal banking system. “I would like to request those who use hundi to stop it and instead send the money directly through banking channels,” she said at a meeting with the leaders of the Awami League’s different overseas chapters including the USA and the UK ones at her office. The premier said the government is now setting up 100 economic zones in the country and the expatriates can make investment under joint-venture there. Read more: PM Hasina asks police to firmly deal with destructive acts “Those who want to do business can make investments there. If anyone (expat) can bring foreign partners (from various countries of the world) to invest here, it would be better,” she said. Expressing satisfaction over new investments coming to Bangladesh, she said the inflow of foreign funds in the country is good as the foreign investors consider Bangladesh as a good destination. Talking about the global crisis induced by the Russia-Ukraine war, Hasina said her government won’t let the people suffer from the food shortage. Read more: Foreign observers are welcome during next general election: PM Hasina tells British MPs “So, we’re purchasing food from anywhere in the world, and spending money whatever is required. We’re facing some problems because of the Ukraine war….. We will not let the people suffer,” she said, adding that the inflation rate is showing a decreasing trend in the country. She, however, expressed satisfaction over production of the Aman paddy and said that it has been a bumper yield this year. Now everyone is now busy planting Boro paddy and the stock of fertilizer is satisfactory, she added. PM Hasina said her government has already reached electricity to every house and allowed people to install small solar panels particularly for irrigation. Read More: Bangladesh gets $10.49 billion inward remittances in July-December: Central Bank.