United News of Bangladesh

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday said the central bank is aiming to bring inflation down to 5 percent, a more ambitious target than the government's official goal of 6.5 percent. "If we can achieve this, we will consider ourselves successful," Dr Mansur made the remarks at the launch event of Google Pay in Bangladesh, held at a hotel in Dhaka. The event was also attended by Tracy N. Jacobson, Chargé d'Affaires of the US Embassy, and Hossain Khaled, Vice Chairman of City Bank, as special guests. Other notable attendees included Masrur Arefin, Managing Director and CEO of City Bank; Shammi Quddus, Group Product Manager at Google Payments; Mohammad Kamal, Country Manager of Mastercard Bangladesh; and Sabbir Ahmed, Country Manager of Visa Bangladesh, along with senior officials from the participating organisations. Reaffirming the central bank’s commitment to a digital future, Dr Mansur said, “We are striving to enter a cashless world, and it is already becoming possible. With the launch of Google Pay in the country, Bangladesh has taken another step forward towards a cashless society.” Merger of 5 Islamic banks at final stage: Bangladesh Bank Governor He also highlighted the importance of attracting foreign businesses to the country. “We hope there will be more gatherings of local and foreign entrepreneurs in Bangladesh. When foreigners complete work in Bangladesh, the country ultimately benefits,” he said. Talking about broader reforms in the financial sector, the Governor said initiatives are underway to gradually bring school-aged children into the formal banking system. He said risk-based audits have been completed for 20 banks, with another 7 expected to be finalised by the end of July. “Under no circumstances will the banking sector be allowed to return to its previous state.” Speaking on the exchange rate of the US dollar, Dr Mansur remarked, “The price of our country’s dollar will not be determined from Dubai. That is why the dollar has been released into the market.” Masrur Arefin, Managing Director and CEO of City Bank, commented on the partnership: “This partnership reflects our commitment to Bangladesh’s future-oriented digital payment system. We are proud to bring more smart and convenient payment solutions to our customers.” He said with the introduction of Google Wallet, City Bank has once again demonstrated its leadership in digital innovation, offering secure, modern and internationally standard financial services.

Bangladesh Bank Governor Dr Ahsan H Mansur announced that the merger of five private sector Islamic banks is at the final stage, assuring that no employee would lose their job due to the process. Speaking to a group of journalists at the Bangladesh Bank Boardroom on Sunday, the Governor said, "This merger has no connection with the elections. It is an ongoing process. We hope the next government will continue to advance this process. However, we will not wait for the elections; the five Islamic banks will be merged within the next few months." Some troubled Islami banks to merge under state ownership: BB Governor The five banks set to be merged are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank. Dr Mansur emphasised that employees had no reason to worry. Some branches may be reorganised if necessary. "For banks with a higher concentration of branches in urban areas, initiatives may be taken to relocate some branches to rural areas," he added. In response to a question regarding the repatriation of laundered assets, the Governor said, "The process of recovering assets is a long-term and step-by-step procedure. It is not possible to recover these funds without a final court verdict. For this, specific information and data must be collected, and proper legal procedures followed." He went on to say, "We want our claims to be verified through the court. Action to recover funds can only be taken based on court decisions." Forex reserves targeted to hit $30bn by June: BB Governor Dr Mansur also highlighted the Alternative Dispute Resolution (ADR) method, stating, "The path for asset repatriation through amicable settlement outside court is also open. In such cases, lawyers from both sides will seek solutions through discussion. Bangladesh Bank will prepare accordingly and appoint lawyers based on the path the government determines—be it through court or ADR." The Governor mentioned that preparations are underway to conduct legal proceedings in domestic courts for the recovery of local assets and in relevant foreign courts for the recovery of overseas assets.  

The government is working to establish a dedicated fund to manage the seized and frozen money and shares of individuals who have embezzled funds through illicit means. This fund will be used to provide financial support to banks that have been affected by such looting, enabling them to repay their depositors. Bangladesh Bank Governor Dr. Ahsan H. Mansur said this while speaking at a press conference held at the Foreign Service Academy in the capital on Monday. He said the funds recovered from illegal activities outside the banking sector will be allocated for the welfare of the needy and poor people. Also present at the event were the Principal Advisor's Press Secretary Shafiqul Alam and the head of the Bangladesh Financial Intelligence Unit (BFIU), A F M Shahinul Islam. Earlier in the day, a meeting was held at the Jamuna chaired by Chief Adviser Professor Muhammad Yunus, to review the progress of bringing back laundered money. Following the meeting, the governor spoke in the press conference. Responding to a question regarding his (governor) remarks that those who have laundered money from the country will not be able to live in peace, Dr. Mansur said, "I don't believe they are at peace. They are hiring top lawyers. We have heard that S Alam will spend three crore dollars annually on his lawyers. This is not a sign of being at peace.” Next govt should continue financial sector reform, bring back laundered money: Governor “Recovering money and being at peace are two different things. We have managed to disrupt their sleep. It will take time to bring back the money because it will proceed following legal procedures," he added. There are 11 teams under the inter-agency task force currently investigating allegations of money laundering against top 10 business groups and the family of former Prime Minister Sheikh Hasina. Updated information regarding this was presented at the meeting. The 10 industrial conglomerates outside of Sheikh Hasina's family under investigation include S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, Gemcon Group, Nasa Group, Bashundhara Group, Sikder Group, and Aramit Group. Press Secretary Shafiqul Alam stated, "Another indication that they are not at peace is that an additional 125 medium-sized irregularities, involving those who have looted more than Tk 200 crore, are coming under investigation. “We are working with 20 foreign legal firms. The terms of reference for the work with these institutions are now being finalized,” he pointed out. Press secretary further informed that immovable assets worth Tk 1,30,758 crore belonging to those under investigation have been attached. Additionally, US$ 164 million held abroad and movable assets worth Tk 42,614 crore have been seized. Governor Dr. Mansur emphasized that this government is the first to decide to form such a fund because the seized money and assets are already under government control. He said that the fund's operations could begin soon, and legal amendments would be made if necessary. Funds belonging to banks will be returned to the banks, while money embezzled from other sectors will be used for public welfare. Regarding the feasibility of this, governor explained that funds deposited in banks as savings will be easily accessible. In the case of Islami Bank, shares worth Tk 12,000 to 15,000 crore belonging to the S Alam Group have been frozen. These shares will be transferred to a strategic investor, and the proceeds will go to the bank, which will be used to repay depositors. Default loans rise to Tk3.45 lakh crore until December: Governor

Bangladesh Bank Governor Dr Ahsan H Mansur has said Bangladesh has signed a staff-level agreement with the International Monetary Fund (IMF) to receive the next installments under the ongoing loan programme. Joining a press conference virtually from Dubai, Dr Mansur said the IMF is set to release the next two tranches totalling $1.3 billion of the $4.7 billion loan package by June 2025. He hinted at a more flexible exchange rate regime for the US dollar, adding that the market will remain unaffected as there is an adequate supply of dollars at present. IMF finally agrees to release $1.3bn loan tranche for Bangladesh in June Responding to a query, the Governor assured that easing the exchange rate will not fuel inflation, as the country’s macroeconomic stability has already been restored. “Bangladesh will receive a total of $3.5 billion in foreign loans from international agencies, excluding the IMF, by June 2025,” he added. Dr Mansur said the funding will come from the World Bank, the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the International Infrastructure Development Bank. Issuing a caution against market syndicates, the Governor said Bangladesh Bank will actively monitor the foreign exchange market. He further noted that the central bank has kept a reserve of foreign currency to ensure market stability. Bangladesh’s economy holds glimmers of hope amid IMF-ADB’s lower growth forecasts: Experts Rejecting claims of an unusual spike in foreign exchange rates, Dr Mansur stated that banks and authorised exchange houses are required to submit exchange rate reports to the central bank twice a day. He reaffirmed that Bangladesh Bank will closely monitor the currency market and intervene by selling dollars when necessary to curb any abnormal rise in the dollar rate.  

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.