Banking

Md Mostaqur Rahman FCMA, a garment exporter and cost and management accountant, has been appointed governor of Bangladesh Bank for a four-year term, replacing Ahsan H Mansur.

The Financial Institutions Division (FID) under the finance ministry issued a gazette notification today (25 February) appointing Mostaqur, who currently serves as chairman of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Standing Committee on Bangladesh Bank.

In a separate gazette issued the same day, the government cancelled Ahsan Mansur’s contract with immediate effect.

Mostaqur is managing director and CEO of Hera Sweaters Limited and was a member of the BNP’s election steering committee during the 13th national election held earlier this month. He previously served as a board member of the Chittagong Stock Exchange between 1998 and 2000, when current Finance Minister Amir Khasru Mahmud Chowdhury chaired the same board.

This marks the first time in Bangladesh’s history that a businessman has been appointed governor of Bangladesh Bank. Traditionally, the post has been held by bureaucrats, economists or career bankers.

In an immediate reaction to bdnews24.com, the businessman-turned-governor said “restoring confidence” in the banking sector would be his priority at the beginning of his tenure.

“You know the current condition of the economy and the banking sector. So taking on this responsibility at this time certainly comes with challenges,” Mostaqur said.

“Insha’Allah, let me first sit at the Bank and hold discussions with everyone. With everyone’s cooperation, the main task will be to build trust in the banking sector first, and to restore discipline further. Certainly, the previous governor (Ahsan H Mansur) has already restored much of it, and we will take it forward.”

Finance Minister Amir Khasru Mahmud Chowdhury said the change in the governor’s post was “not unusual.”  

“A new government has come to power. Many things will change. This is not unusual. There will be changes in many places,” he told journalists at the Secretariat. 

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said the appointment marks the first time a businessman has become central bank governor.

“We hope the new governor will carry forward reform initiatives to ensure the central bank’s independence and governance in banks,” she said.

Economist Selim Raihan of South Asian Network on Economic Modelling (SANEM) wrote on social media that appointing a professional accountant and businessman to the governor’s post raises legitimate questions about the government’s commitment to banking sector reform.

“Bangladesh Bank is not merely a policy-making body but also the regulator and supervisor of commercial banks. Appointing someone with a business background may create potential conflicts of interest, as business leaders may prioritise corporate interests, whereas the central bank’s primary responsibilities include controlling inflation, ensuring financial stability and taking firm action against weak banks,” he wrote.

Bangladesh’s banking sector is already grappling with high default loans, governance deficiencies and political influence. In this context, transparency, professional independence and regulatory experience were critical considerations in appointing a governor, he argued.

The key question now, he said, is whether the new appointment will strengthen reform momentum or slow it down.

Drama over the new appointment

Ahsan H Mansur was appointed as BB governor on 13 August 2024, eight days after a mass uprising ousted the Awami League government, and four days after the then governor Abdur Rouf Talukder resigned.

The cancellation order of Ahsan Mansur’s contract came abruptly after some officials held a protest at the Bangladesh Bank premises today over the transfer order of three officials accused of violating office rules.

“Appointing someone with a business background may create potential conflicts of interest, as business leaders may prioritise corporate interests, whereas the central bank’s primary responsibilities include controlling inflation, ensuring financial stability and taking firm action against weak banks”

Selim Raihan, professor at the Department of Economics, University of Dhaka

Earlier, on 16 February, some members of Bangladesh Bank Officers’ Welfare Council described Ahsan Mansur as “autocratic” over bank merger initiatives and digital banking licence processes. On 23 February, three officials who spoke at a press conference were served show-cause notices and transferred outside Dhaka the next day, prompting protests by central bank officials.

When they staged a protest at 11am today, the governor held a press conference saying that a “vested quarter” was trying to foil the recovery process of merged banks so that they may eventually return to their previous owners.

Soon after media reports of his replacement surfaced after the press conference, Ahsan H Mansur left office, telling reporters: “I have not resigned, nor have I been removed. I saw it in the media, so I am going home.”

Following the issuance of the new appointment order, Bangladesh Bank officials reportedly forced the governor’s adviser, Ahsan Ullah, to leave the premises.

Reforms during Ahsan’s tenure

Just before the fall of the Hasina regime in August 2024, Bangladesh faced an acute fear of economic collapse.

Foreign exchange reserves were draining rapidly, external dues were piling up, and inflation surged as the Bangladesh Bank injected thousands of crores of Taka to keep several cash-strapped banks afloat. Businesses were absorbing heavy exchange losses amid extreme dollar volatility, further eroding confidence.

Following the political transition, however, the central bank’s macroeconomic reset helped stabilise key indicators and dispel fears of a Sri Lanka-style crisis. Dollar shortages eased, inflation cooled, and investor sentiment improved both domestically and internationally.

Foreign exchange reserves rebounded strongly allowing the interim government to clear external arrears. The Bangladesh Bank added over $12 billion to reserves within a year, raising the total from $18.8 billion in December 2024 to $30.3 billion as of 24 February 2026,  enough to cover more than four months of imports.

A more flexible exchange rate regime, coupled with aggressive policy rate hikes, restored discipline to the currency market. The exchange rate has held steady at Tk122–123 per dollar for six consecutive months. The central bank moved swiftly to merge and restructure troubled banks, calming depositors and bringing back liquidity. Deposits increased noticeably after governance reforms at problematic banks.

Many large conglomerates have struggled to service debts since the regime change due to exchange losses and political disruptions.

Monetary tightening measures helped inflation fall from a 12-year high of 11.36% in July 2024 to single digits for the past six months. 

Although still above the Bangladesh Bank’s FY26 target of 6.5%, the State of the Economy 2025 report attributes the improvement to monetary tightening, supply-side interventions, stable global commodity prices, and a steady exchange rate.

Bangladesh Bank also amended at least six laws as part of legal reform including major changes in Bank Company Act and Bangladesh Bank Order. 

Profile of Mostaqur Rahman

Mostaqur Rahman has over 33 years of experience as a Cost and Management Accountant. He holds BCom (Hons) and Master’s degrees in Accounting from Dhaka University.

He has been associated with BGMEA, Real Estate and Housing Associations of Bangladesh (REHAB), Travel Agents of Bangladesh (ATAB) and the Dhaka Chamber of Commerce and Industry, and has served on various committees. He has also worked closely with Bangladesh Bank and the Chittagong Stock Exchange.

The proposal for his appointment was cleared by the finance minister, approved by the prime minister and finalised with the president’s consent before the gazette notification was issued.

Under appointment rules, Mostaqur must sever professional ties with other institutions before assuming office