Bangladesh Bank Governor Dr. Ahsan H. Mansur has said that the central bank has already undertaken extensive reform measures to ensure stability in the country’s financial sector, control inflation, and stabilize the foreign exchange rate.
He made these remarks while speaking as a special guest at the publication ceremony of “Bangladesh State of the Economy 2025” and the “Sustainable Development Goals (SDGs) Bangladesh Progress Report 2025,” held at Sher-e-Bangla Nagar in the capital.
Dr. Mansur said, “When I assumed office, foreign exchange reserves had declined, defaulted loans were rising, and the financial market was under severe stress. Under those circumstances, stabilizing the exchange rate was the most important challenge.” The exchange rate was nearly Tk 120 per US dollar, which has now stabilized under a fully market-based system.
The Governor stated that the external sector of the country is now in a positive position. The current account is in surplus, the financial account has returned to growth, and the overall balance of payments is now positive. Additionally, foreign exchange reserves have increased by nearly USD 10 billion, rising from around USD 17 billion within one year.
Regarding interest rates, Dr. Mansur said, “It is not possible to reduce interest rates at this moment. Although inflation has decreased, real interest rates need to remain slightly positive. Monetary policy will remain fully market-based, with no scope for administrative intervention.”
He added that after ensuring transparency in long-standing irregularities and defaulted loans, it has become evident that the actual default loan ratio exceeds 35 percent. However, a significant reduction is expected by December.
Dr. Mansur also said that Bangladesh Bank has already restructured the boards of 14 banks, initiated the merger of five banks, and advanced the dissolution process of nine non-bank financial institutions. Important legal reforms such as bank resolution laws, amendments to the Bank Companies Act, and the implementation of the Deposit Insurance Act are also underway.
He added that newly merged banks may become profitable within the first or second year. The “No Dividend, No Bonus” policy remains effective for loss-making institutions. Industrial enterprises linked to major defaulters have not shut down due to a lack of financing. While the external sector is fully under control, it will take time to restore complete stability in the financial sector.
Dr. Mansur expressed hope that the structural and legal reforms undertaken by the central bank will continue and that the next government will maintain these efforts.
