Mansur makes unceremonious exit as govt appoints new governor

In an abrupt shakeup in the central bank's top echelon, the new government Wednesday appointed accountant-businessman Md. Mostaqur Rahman as new governor of the Bangladesh Bank (BB).

Dr Ahsan H. Mansur made an unceremonious exit as the government terminated his job contract as governor, amid protest by a section of central bank's officers outside.

A group of the demonstrating BB officials, meanwhile, forced Ahsan Ullah, adviser to Governor Mansur, out of the central bank's premises.

With the latest appointment given by the Ministry of Finance, the country gets a businessman as the central bank governor for the first time in its history.

Amid briefings by the protesting BB officers and the governor, the ministry issued two notifications. One notification says the remaining tenure of Dr. Ahsan H. Mansur as governor has been cancelled "in public interest", with the order taking immediate effect.

Another notification announced the appointment of Mostaqur Rahman as governor for a term of four years from the date of his joining.

The order requires him to relinquish all professional affiliations with other institutions and organisations before assuming office -- and it takes effect immediately.

Mostaqur Rahman is a cost and management accountant (FCMA) and a businessman by profession. He is the managing director of Hera Sweaters located in Narayanganj.

Born in Dhaka in 1966, Mr. Rahman completed his undergraduate and master's degrees in accounting from University of Dhaka. He later obtained the FCMA qualification from the Institute of Cost and Management Accountants of Bangladesh.

An entrepreneur with more than 30 years of experience, the newly appointed governor has been involved with corporate finance, exports, institutional governance, and financial management. In addition to the ready-made garment sector, he also has business interests in real estate.

Mr. Rahman is a member of several trade bodies, including Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Association of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB) and Dhaka Chamber of Commerce and Industry (DCCI).

He has served on various committees of these organisations and has prior experience working with Chittagong Stock Exchange Limited.

Following the July-August uprising in 2024 that toppled the Sheikh Hasina's governing regime, the interim government appointed Dr. Ahsan H. Mansur as the central bank governor to replace the then governor, Abdur Rouf Talukder, who did not attend office after the mass uprising, on 14 August 2024.

Nine days after the Bangladesh Nationalist Party (BNP)-led government came to power, Dr. Ahsan H. Mansur's appointment was cancelled, in the wake of large-scale administrative reshuffle.

Of the previous 13 governors, eight were bureaucrats, two economists, two commercial bankers and one academic.

Asked on what grounds the governor was changed, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said there was nothing to be taken into consideration in this case.

"A new government has come. The new government has priorities. Naturally, the changes are taking place, not only in central bank, changes are also coming in many places and that will continue," he said.

Chowdhury makes it clear that changes will be made "wherever necessary to implement the new government's programmes, preferences, and ideas".

The outgoing governor of the central bank, Dr Ahsan H Mansur, said the government could have followed a different path to remove him from the post instead of creating the "mobocracy-like" situation.

"It could have been otherwise, but it's okay," he told the Financial Express on Wednesday night over the phone.

He said: "Whatever Allah does He does it for the welfare of the creatures. I wish both the government and the new governor success."

Contacted, Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, said he didn't have any idea about the newly appointed governor and there is no public record about him to make a comment at this stage.

"The government should consider appointing right person in the right job," he said, so that no mismatch is created.

Dr. Hussain notes that competence of a person and conflicts of interest should be taken into consideration by the government before making new appointments in key positions.

"No compromise should be made in these two basic areas for appointment of a person who will lead an organisation."

On condition of not being quoted by name, a former managing director of a private commercial bank says Dr Mansur came into the central bank leadership when the economy was in a disastrous situation with fast-depleting forex reserves.

From such unpleasant scenario, he recounts, the policies taken by the Mr. Mansur helps reshape the economy increasing foreign-exchange reserves to $35 billion from less than $19 billion after clearing mounting accumulated unpaid bills.

"He not only stabilised the forex market but also made stable the local currency, which gives us some sort of comfort. His exit could have been done in a better way," he remarks.

About the newly appointed governor, the seasoned banker said he is a gentleman and lived close to his house. "But he lacks element of running central bank. But I wish him all the best."

Seeking anonymity, the managing director and chief executive officer of a private commercial bank said the way the outgoing governor left "is unfortunate and unexpected".

About the new governor, he said: "It's hard to believe that a businessman becomes a governor."

bdnews24.com adds: Newly appointed Bangladesh Bank Governor Md Mostaqur Rahman has signalled that "restoring trust" in the banking sector will be his top priority, alongside efforts to lower interest rates.

The garment industry entrepreneur assumed office on Wednesday, appointed by the BNP-led government, succeeding Ahsan H Mansur, who had served during the caretaker government.

Commenting on his vision for the central bank, Mostaqur said: "As you know, the economy and the banking sector face challenges. Taking on this responsibility at this time is a challenge.

"God willing, I will first sit in the bank, consult with everyone, and with cooperation, focus on the primary task-trust-building in banking, restoring discipline. Of course, the previous governor achieved a lot, and we aim to continue that work."

He added, "Another main focus will be driving growth. Credit growth is slowing, as you know, so we will work to lower interest rates and stimulate lending."

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