A draft of the Bangladesh Bank Ordinance (Amendment) has been prepared, bringing major changes to the Bangladesh Bank Order 1972, including a proposal for the governor’s appointment by the President and an extension of the tenure.

A senior official of the central bank, seeking anonymity, said the draft aims to enhance the autonomy of Bangladesh Bank by altering the process of appointing the governor and revising the tenure.

As per the Bangladesh Bank Order 1972, the government currently holds the authority to appoint the governor and one or more deputy governors.

The proposed amendment seeks to vest this power in the President.

The official said until now, the prime minister could appoint the governor without the president’s consent or advice.

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Under the draft, the President would appoint the governor in consultation with the prime minister. Parliamentary consent for the appointment has also been proposed.

Other proposed changes include revising the oath-taking process and upgrading the rank of the governor and deputy governors.

Under the 1972 law, the governor’s current tenure is four years. The draft proposes extending it to six years.

Speaking at a recent programme on amending the banking law, Bangladesh Bank Governor Ahsan H Mansur said major reforms are being brought to strengthen the central bank’s authority and ensure its autonomy by freeing it from political influence.

Bangladesh Bank spokesperson Areif Hossain Khan also said the draft ordinance has been prepared. “Which proposals will be incorporated in the final version will be known only after the ordinance is issued,” he added.