Officials of Bangladesh Bank have publicly called for the resignation of Finance Adviser Dr Salehuddin Ahmed following the reported cancellation of a proposal aimed at strengthening the central bank’s autonomy. The demand was voiced on Monday (9 February) during a protest gathering held in front of Bangladesh Bank’s Building 30 at its headquarters in Motijheel, Dhaka.
The demonstration was organised under the banner of the Bangladesh Bank Officers’ Welfare Council, the representative body of the institution’s officials. Participants expressed frustration over what they described as the abrupt rejection of a long-anticipated amendment to the Bangladesh Bank Order, the principal legislation governing the central bank’s mandate and powers.
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Allegations of Policy Reversal
Speaking at the rally, the Council’s President, AKM Masum Billah, stated that a formal proposal to amend the Bangladesh Bank Order had been submitted to the Ministry of Finance on 9 October last year. The objective, he said, was to reinforce the bank’s operational independence and modernise its legal framework in line with international standards.
According to Mr Billah, the proposal was rejected “without due process or consultation”. He further alleged that Dr Ahmed had previously supported greater autonomy for the central bank during his tenure as Governor. However, in his current role as Finance Adviser, he reportedly informed the incumbent Governor in writing that such amendments were unnecessary.
“This apparent contradiction has undermined confidence,” Mr Billah said. “We are therefore demanding his resignation—even if only for a single day—as a matter of principle.”
Political Context
The Council’s leaders also noted that two major political parties contesting the forthcoming general election have pledged in their manifestos to strengthen the central bank’s autonomy. They urged whichever party forms the next government to implement reforms without delay. A further course of action will be decided after 12 February, following consultations with officials at all levels of the bank.
In a written statement, the Council’s General Secretary, Golam Mostafa Srabon, emphasised that ensuring effective autonomy is essential to safeguarding financial discipline and good governance. He argued that, despite several structural reform initiatives undertaken during the interim administration, the failure to promulgate the anticipated amendment ordinance has caused “deep disappointment and resentment” among staff.
Proposed Reform Measures
While the full text of the proposed amendment has not been made public, officials indicated that it sought to clarify the central bank’s authority in monetary policy formulation, regulatory oversight, and institutional governance.
A summary of the key issues is presented below:
| Issue | Existing Framework | Proposed Amendment |
|---|---|---|
| Monetary Policy Authority | Coordinated closely with Ministry of Finance | Greater operational independence in policy decisions |
| Appointment & Removal of Governor | Executive discretion predominant | Clear statutory criteria and procedural safeguards |
| Regulatory Oversight | Shared influence between institutions | Strengthened autonomous supervisory powers |
| Legal Framework | Based on existing Bangladesh Bank Order | Updated, consolidated and modernised structure |
Broader Implications
Economists have long argued that an independent and credible central bank is vital for maintaining price stability, containing inflationary pressures, and preserving financial-sector discipline. Bangladesh, like many emerging economies, faces ongoing challenges including exchange rate volatility, banking sector vulnerabilities, and the need for prudent macroeconomic management.
Against this backdrop, the controversy surrounding the amendment proposal has intensified debate over the appropriate balance between governmental oversight and institutional independence. Whether the issue becomes a defining feature of the upcoming election remains to be seen, but it has already exposed tensions within the country’s financial governance framework.
For now, Bangladesh Bank officials appear determined to keep the matter in the public domain, framing their demand for resignation as a symbolic stand in defence of institutional integrity.