Bangladesh Bank set to become constitutional body

The interim government has finalized a draft ordinance proposing to elevate Bangladesh Bank to the status of a constitutional body, effectively barring the executive branch from interfering in its operations.

The International Monetary Fund (IMF) and the World Bank (WB) have already reviewed the draft of “Bangladesh Bank Order, 2025”, said sources within the central bank.

The ordinance, likely to be issued by the end of the year, would grant Bangladesh Bank exclusive authority over the country's financial sector and monetary policymaking, making it accountable only to the parliament. This would usher in a new era of extensive autonomy for the central bank, effectively ending government control and oversight of its operations.

The governor and deputy governor would be appointed for a six-year term, with the prime minister recommending a list of candidates and the parliament providing final approval. Significantly, the chief justice would administer the oath of office to both the governor and deputy governor.