Central Bank Autonomy Protest

Officials of Bangladesh Bank have publicly demanded the resignation of Finance Adviser Salehuddin Ahmed after the government moved to scrap a proposal designed to strengthen the central bank’s autonomy. The demand was voiced at a protest rally held on Monday afternoon outside the central bank’s Building 30, organised under the banner of the Bangladesh Bank Officers’ Welfare Council. Demonstrators argued that the withdrawal of the amendment undermines institutional independence at a time when the financial sector faces heightened governance and stability challenges.

Addressing the gathering, Council President A K M Masum Billah said that, in early October, Bangladesh Bank had formally submitted to the Ministry of Finance a set of amendments to the Bangladesh Bank Order aimed at reinforcing legal and operational autonomy. According to the Council, the proposal was set aside without due process or transparent consultation. Mr Billah added that Dr Ahmed had previously supported the same reform package during his tenure as Governor of Bangladesh Bank, but later wrote to the incumbent Governor indicating that the amendments were unnecessary. “This reversal of position has damaged trust. We are therefore asking for his resignation, even if only symbolically for a day,” he said, framing the demand as a protest against perceived policy inconsistency.

Speakers at the rally stressed that effective central bank autonomy is not merely a technical matter but a cornerstone of financial stability. They pointed to persistent weaknesses in banking governance, elevated levels of non-performing loans, and repeated calls from domestic and international stakeholders for stronger regulatory independence. In their view, insulating the central bank from undue administrative influence would improve supervision, bolster market confidence, and support credible monetary and prudential policy-making.

The Council also linked its campaign to the political calendar. Mr Billah noted that the two leading parties contesting the forthcoming general election have both pledged in their manifestos to support greater autonomy for the central bank. He said the Council would convene consultations with officials at all levels after the election on the 12th to decide on further programmes of action, urging whichever party forms the next government to move swiftly from manifesto commitments to legislation.

In a written statement, Council General Secretary Golam Mostafa Shrabon recalled that the Council had submitted a memorandum to Dr Ahmed before the October proposal was sent, urging prompt legal reform. Despite a series of structural reform initiatives undertaken during the interim administration, he said there had been no visible progress on the long-awaited amendment to the Bangladesh Bank Order. This, he warned, has fuelled deep frustration and anger among staff. “An independent and capable central bank is indispensable for financial sector reform and the preservation of macroeconomic stability,” he said, adding that delays risk entrenching existing governance weaknesses.

Proposed Reform Areas and Intended Impact

Protest leaders concluded that without concrete progress on legal autonomy, broader financial sector reforms would remain vulnerable to political cycles. They urged the authorities to restore the amendment process through transparent consultation and timely legislation, arguing that institutional credibility is essential to restoring confidence in Bangladesh’s banking system and safeguarding long-term economic stability.