Bangladesh Bank Governor Dr. Ahsan H. Mansur assured on Thursday that the country is not facing a shortage of foreign exchange and encouraged the business community to proceed with the import of essential goods to meet market demand. "Currently, we do not have any shortage in foreign exchange. Anyone can open an LC," Dr. Mansur said, speaking to reporters after a meeting on inflation at the Finance Ministry, chaired by Finance Adviser Dr. Salehuddin Ahmed. Emphasizing the need to address demand in the market, Dr. Mansur urged businesses to act decisively. "Open your LC, import essential items, and meet the demand," he advised. Bangladesh Bank Governor urges patience as it could take 12-18 months to curb inflation In his remarks, the central bank governor reaffirmed his belief in a free-market economy, expressing confidence that market forces would help stabilize the current economic situation. "We will take necessary measures, but it will take time to cool down the situation," he added. Dr. Mansur detailed several government initiatives aimed at easing inflation, including expanding rationing programs. He announced that the government will soon increase the distribution of essential commodities to 10 kilograms, up from the current five kilograms, for each of the 10 million beneficiary families. "We are increasing the number of trucks for the Open Market Sale (OMS) initiative," he noted, aiming to improve accessibility to essential goods at controlled prices. Addressing inflation directly, Dr. Mansur emphasized that inflation is "ultimately a monetary phenomenon" and that it must be managed through effective monetary policy. He cautioned against excessive market intervention, recalling past incidents where heavy-handed measures led to product shortages. BB will ask banks not to impose LC margin on essentials import until Ramadan "If we apply too much pressure, products will disappear from the market. We saw this during the 1/11 period and again in the recent egg crisis," he warned. Instead, he advocated for "light-touch qualitative monitoring," saying, "We are putting pressure through dialogue, not over-monitoring." Dr. Mansur emphasized a measured approach to market control, discouraging impulsive decision-making. "We aim for a balanced approach. There is no scope for rash decisions in this context. We believe that the situation will stabilize—it just needs time," he concluded, expressing confidence that government efforts to increase supply would eventually help bring relief.

Bangladesh Bank Governor Dr. Ahsan H. Mansur on Thursday said that implementing the government’s monetary policy aimed at curbing inflation will require 12 to 18 months. “After tightening the monetary policy, it takes 12 to 18 months to bring down the inflation rate. So, we have to be patient,” Dr. Mansur said during a press briefing following a meeting on inflation at the Finance Ministry, chaired by Finance Adviser Dr. Salehuddin Ahmed. The governor clarified that the central bank’s approach is focused on controlling inflation rather than reducing the overall price level. “We manage inflation; we don’t aim to lower the price level itself. No country seeks to reduce prices to avoid the risk of deflation,” he explained. Inflation in Bangladesh went up in Oct Deflation, a sustained drop in the price level of goods and services, can initially seem beneficial as money gains purchasing power. However, prolonged deflation can hamper economic growth and often arises during periods of economic instability. Its impact, Dr. Mansur noted, can have both positive and negative effects on the economy. Addressing public expectations, Dr. Mansur urged citizens to remain patient as the policy gradually takes effect. “This isn't something that can be achieved in two to three months. At best, we might see results in 12 months, but 18 months is a more realistic timeframe,” the Bangladesh Bank governor said. BB will ask banks not to impose LC margin on essentials import until Ramadan

Bangladesh Bank Governor Dr. Ahsan H. Mansur has officially taken charge as Chairperson of the SAARCFINANCE Network, marking a significant leadership role for Bangladesh within the regional economic collaboration. Dr. Mansur assumed this position at the 46th SAARCFINANCE Governors’ Group Meeting held on October 24 in Washington, D.C., where he formally accepted the role from the previous Chair, the Central Bank of Sri Lanka. Bangladesh will now serve as the SAARCFINANCE Chair Country for the next year, from November 2024 to October 2025. Weak banks’ deposits returning to positive trend, none should panic: Governor Ahsan Mansur This chairmanship follows a decision from the 45th SAARCFINANCE Governors' Group Meeting in Sri Lanka in June 2024, where Bangladesh agreed to lead in response to a request by the SAARC central banks’ governors. According to SAARCFINANCE terms, two Governors' Group meetings are held annually, involving central bank governors and finance secretaries from SAARC member nations. Traditionally, the first meeting is hosted by the Chair Country, with the second coinciding with the annual IMF-World Bank meetings in October or November. Central bank won't provide 'illegal liquidity support' to banks: Governor Ahsan Mansur SAARCFINANCE, which originated from the 10th SAARC Summit in Colombo on July 29, 1998, was created to strengthen regional cooperation in economic and financial matters. The network aims to facilitate collaborative macroeconomic policies and provide a platform for sharing insights and strategies tailored to regional needs, as outlined in a press release.

Dr. Ahsan H. Mansur, newly appointed governor of Bangladesh Bank, has said his priority will be to check the high inflation and restore stability in the financial sector.  Expressing satisfaction over his new responsibility Dr. Mansur told UNB on Tuesday night that he will work with all stakeholders in the financial sector to bring back stability and put it on a solid foundation. On Tuesday night the interim government's law ministry hurriedly waved the age limit of 67 years for anyone to be appointed as governor of the central bank. Economist Mansur is now 72 years old. The last time the age limit provision got amended from 65 years to 67 years was in July 2020 to accommodate the reappointment of then-governor Fazle Rabbi.  Read more: Money launderers won’t be allowed to sleep in peace: New Bangladesh Bank Governor He believed that despite high inflation - it hit 11.66 in July in a 13-year high- the central bank under the previous administration did not give full attention to curb it.  Controlling inflation remains a top priority for any central bank.  However, money supply, exchange rate stability, and inflation control all depend on the decision of the governor. Besides, the standard of living, international trade, investment, and employment depend a lot on the decisions of the central bank of any country, he said. Dr. Mansur started his career as a lecturer, at the Department of Economics, Dhaka University in 1976. He left for Canada for higher studies in economics the same year. As a graduate student and research assistant, he was also offering regular economics courses at the undergraduate level at the University of Western Ontario, Canada (1978-81).  Dr. Mansur joined the International Monetary Fund under its Economist Program in 1981 and thereafter completed his PhD in Economics (on general equilibrium analysis) from the University of Western Ontario in 1982. During his long career at the IMF, he worked in Middle Eastern, Asian, African, and Central American countries. He worked in important functional departments (Fiscal Affairs and Policy Review and Development departments) and area departments (Middle East and Central Asia and Asian departments) of the IMF. Read more: Inflation hits 13-year high of 11.7% in July: BBS He also served as the IMF Senior Resident Representative to Pakistan from 1998-01 and as the Fiscal Advisor to the Minister of Finance, Government of Bangladesh (1989-91).

Economist Dr Atiur Rahman said that corporate good governance should be a part of life, not the expectation, which will be a source of value creation for any of the entities in the private and the public sectors. He said not only in the financial sector, but corporate good governance is also essential for all kinds of enterprises to extend the industrial revolution. Former Bangladesh Bank Governor Dr. Atiur said this at a seminar in Kolkata organised jointly by the Insurance Institute of India and Kolkata, Insurance Institute on Tuesday (13 June 2023). Also Read: ICCB calls for good governance to ensure international compliance Presided by Basant Kumar Naik, Principal of the Institute of Insurance in Kolkata the seminar was attended by Babu Paul, General Manager, National Insurance; Miss Y. Lama, an insurance expert; Professor Konika Chatterjee, Department of Commerce, Calcutta University; and faculties, students, and experts from financial sectors. “Customer trust is the foundation of good governance of any organization. They want delivery and not empty promises,” Dr Atiur said. Also Read: Lawyers can play a big role to ensure good governance: President Again, if they don’t get the promised services, they must be provided with a customer interest protection mechanism to redress their grievances, he pointed out. The long-term sustainability of the organisation depends largely on corporate good governance, which thrives on the execution of well-set-out rules and procedures of the board with enough competent independent members, he said. Also Read: Proposed amendments to banking act don’t go far enough in quest for good governance: Experts Dr. Atiur said that knowledge management and human resource management are pivotal to good governance. And for up-to-the-mark knowledge management- there is no alternative to ensuring exchanges between national, regional, and international peers. He urged that such discourses and exchanges must be facilitated so that governance practices can be revisited and augmented on a regular basis.    

The spring meeting of the World Bank Group and the International Monetary Fund (IMF) begins today (April 10, 2023) in Washington DC, USA. This meeting is likely to announce an allocation of USD $50 billion from the organisations to face the global crisis. The seven-day meeting will continue till April 16 at the headquarters of the IMF and the World Bank Group in Washington. Read More: Bangladesh's GDP growth expected to pick up to 6.2% in FY2024: World Bank According to the Ministry of Finance, a delegation of six members is participating in the spring meeting led by the Governor of Bangladesh Bank, Abdur Rouf Talukder. Along with the governor, Bangladesh Bank Chief Economist Habibur Rahman, Finance Secretary Fatima Yasmin and Additional Secretary of Finance Department Rehana Parveen and two officials from the Economic Relations Department (ERD) are participating in the meeting. Apart from this, three more officials from the Bangladesh Embassy in the United States are expected to join the meeting along with the Bangladesh team. Read More: World Bank agrees to finance for development of metro rail-centric communication Generally, such meetings are led by the finance minister. However, Finance Minister AHM Mustafa Kamal is not joining the meetings this time. At this meeting of the World Bank Group, the International Bank for Reconstruction and Development (IBRD), a subsidiary of the organization, may announce an additional financing of $50 billion to deal with the global crisis. Being a member of IBRD, Bangladesh will also get the benefit of this financing, the finance ministry sources said. Read More: New World Bank leadership must put Climate Action as top priority: V20 The World Bank's spring meeting will be chaired by President of France Emmanuel Macron, and Prime Minister of Barbados Mia Amor Mottley. They will be joined by world leaders, academics, development experts and climate experts. Besides, finance ministers, central bank governors of 189 World Bank member countries will participate.

A delegation of International Monetary Fund (IMF) will arrive this week in Bangladesh to start negotiating a USD 4.5 billion loan as budget assistance. A Bangladesh delegation led by Bangladesh Bank Governor Abdur Rouf Talukder attended the IMF annual meeting held in Washington, from October 10-16, and got assurance of loan assistance. In line with this, a delegation from the IMF will visit Dhaka soon to justify the loan requirement and necessary reforms of the financial sector. The Bangladesh Bank governor had a busy week during his Washington visit. The first meeting was held with Rahul Anand, chief of IMF Asia and Pacific Division, and his team. Another meeting with IMF Deputy Managing Director Antoinette M Sayeh was held on the sideline of IMF’s annual meeting, central bank and finance ministry sources said. Read: IMF downgrades outlook for global economy in 2023 Rahul Anand might lead the discussion on loan conditions in Dhaka at the end of this month. The IMF team will meet Finance Minister AHM Mustafa Kamal during the visit. During the visit, an agreement is likely to be signed, which usually takes a few months. The loan program will be sent to the IMF executive board. Disbursements are made after the board approves the program. IMF's standard practice is to work closely with the authorities to come up with a program that is most relevant to the borrowing country's economic and social dynamics. Read Bangladesh Bank yet to allow Indian rupee in foreign trade Bangladesh's economy was still recovering from the losses of the pandemic when the Russia-Ukraine war began in February, disrupting global supply chains and eventually causing inflation in many countries including Bangladesh. The IMF loan will help Bangladesh to ease the forex crisis created here due to external effects from the Covid-19 pandemic and the Russia-Ukraine war.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought the support of Bangladesh Bank (BB) in continuing the growth momentum of the RMG industry by facing current challenges, especially the impacts of the ongoing Russia-Ukraine conflict on the global economy. BGMEA President Faruque Hassan made the request when he called on newly appointed Governor Abdur Rouf Talukder at the BB office in Dhaka on July 21. BGMEA Vice President Md. Nasir Uddin, Directors Asif Ashraf, Barrister Vidiya Amrit Khan, Neela Hsone Ara were also present at the meeting. Read BGMEA, Kuhu to take Bangladeshi culture, heritage to global arena with garments The BGMEA leaders congratulated him on his appointment as Governor of Bangladesh Bank, expressing hope that his extensive experience and expertise in handling financial sector would help him to steer the central bank prudently and efficiently that would contribute to strengthening economy of Bangladesh. They had discussion the on present situation of the apparel, especially problems being faced by the RMG industry and possible measures to address them. They also apprised the BB Governor about the renewed vision of BGMEA that aims to drive the growth of the RMG industry forward in a sustainable manner that will positively impact the economy, the environment and the lives of peoples. Read BGMEA participates in Texworld to explore opportunities in US market BGMEA President Faruque Hassan said the support of Bangladesh Bank would be instrumental in realizing the vision which is aligned with the government vision of sustainable development. He expressed thanks to the Bangladesh Bank for coming forward necessary with policy support for the garment industry at times when the sector needed them. He hoped the central bank would continue its cooperation for the development of the apparel industry in the coming years. Read BGMEA congratulates newly appointed Bangladesh Bank Governor

Parliament passed the 'Bangladesh Bank (Amendment) Bill, 2020' on Thursday raising the age limit for appointing Bangladesh Bank governor to 67 years from 65.