The BNP’s real test lies in Bangladesh’s beleaguered economy

ON 25 FEBRUARY, the newly formed Bangladesh government under the Bangladesh Nationalist Party (BNP) unceremoniously removed Ahsan H Mansur, the man who had largely stabilised the economy in the turbulent aftermath of the July 2024 uprising that toppled Sheikh Hasina’s government, from the post of central bank governor. Mansur had adopted a tight and prudent monetary policy, raising interest rates to curb inflation while working to stabilise the exchange rate and rebuild foreign exchange reserves. He also initiated major reforms to restore confidence in the banking sector and improve financial governance. He was replaced by Mostaqur Rahman, a cost and management accountant by training, who pledged tighter oversight at the central bank and vowed to dismantle Bangladesh’s entrenched culture of crony credit.

The change has been controversial. While the government claimed that both Mansur’s removal and Rahman’s appointment were “in the public interest”, a writ petition filed at the High Court has challenged Mansur’s removal on the basis of a law that disallows the removal of a Bangladesh Bank governor unless they are found to be incapable or incompetent. Some have been critical of Rahman’s appointment to what is ostensibly an independent post because of his close ties to both industry and the government.