At a candid interaction on Sunday, Mostaqur Rahman, Governor, Bangladesh Bank (BB), with print and online media men at the central bank's headquarters, while laying out a reform-focused but cautious policy direction, acknowledged that global instability in the wake Iran war has become a permanent challenge for economic management.
In his opening remarks, the governor said the central bank has already held more than 30 internal meetings and consulted leading economists to shape realistic and grounded policies. He stressed that while engagement is essential, communication from regulators must remain measured to avoid unnecessary market reactions.
He described repeated global shocks-from pandemics to geopolitical tensions-as a "new normal," urging policymakers to adapt rather than wait for stability. According to him, Bangladesh must now move forward with flexible and responsive strategies to protect its economic footing.
Focusing on reforms, the governor made it clear that correcting past mistakes is a priority, especially removing political influence from the financial sector. He said officials have been instructed to stand firm against pressure, even if ultimate accountability lies with him.
On financial recovery, he admitted that asset recovery is complex and time-consuming but confirmed that efforts are ongoing with international support. He also announced a startup fund sourced from bank profits, expected to launch by April and begin disbursement by June, with a strong focus on rural economic activities.
He added that agriculture, SMEs, and reopening idle factories are at the center of the central bank's strategy to boost domestic demand. He also highlighted plans to expand cashless transactions through mandatory Bangla QR codes by July, linking it to transparency, cost reduction, and better revenue collection.
The media participants raised concerns over currency stability, urging the central bank not to pursue devaluation. Instead, they suggested alternative tools like external credit lines to ease pressure on foreign exchange reserves.
They also emphasized the importance of transparency and uninterrupted information flow, warning against actions like freezing media-related bank accounts without proper process. They called for stronger support for SMEs and quicker access to deposits for customers.
Concerns were voiced about rising inflation, capital outflows, and the impact of political rhetoric on economic expectations. Participants stressed the need for targeted policies instead of broad tightening measures, along with strict monitoring of remittance channels.
