The Centre for Policy Dialogue (CPD) on Saturday commented that the government had taken weak steps in appointing a new governor of Bangladesh Bank.
It also said that the appointment process was opaque and the government had the opportunity to choose a more qualified person.
The organization’s research director Khandaker Golam Moazzem Hossain made the remarks at a media briefing titled “New Government’s Policy and Administrative Decisions in the Economic and Social Sectors: 180 Days and Beyond” at the CPD office in Dhanmondi in the capital on Saturday (February 28).
Regarding the appointment of the governor, he said that the current governor has been accused of defaulting on loans and taking special benefits—the government could have made a better appointment if it wanted to avoid such criticism. He said that there is a lack of transparency and criteria-based process in the appointment of the governor.
Talking about the recent reforms in the financial sector, Moazzem praised the role of the recently retired governor.
He said that many of the reforms in the financial sector have been carried out through individual initiatives. Despite the obstacles of interest groups in the reform process, it was taken forward on the basis of logic and argument. He also opined that experienced leadership was necessary to maintain this continuity.
Stating that there is a lack of specific criteria for the appointment of the governor of the central bank in Bangladesh, Moazzem said that currently there is no clear qualification framework other than the minimum age of 35 years.
In future, this process should be brought into a legal framework and the criteria should be determined.
He cited the example of the Reserve Bank of India, where a committee under the Ministry of Finance selects and interviews candidates based on at least 20 years of experience, ability to manage an institution, and higher educational qualifications.
In Bangladesh, too, the CPD recommended forming a screening committee for appointments to important positions in the state, including the governor, and making appointments through a shortlist.
In addition, the CPD research director warned about the government's tendency to 'de-regulate' the capital market. said that in the context of the existing weaknesses of the financial sector, there is still a need for strict monitoring and a strong regulatory framework.
The CPD also called for a review of the trade agreement signed with the United States by the outgoing interim government. The organization believes that the agreement may be against the country's economic interests in the long term.
Moazzem further said that it is important to review various clauses of the interim trade agreement signed with the United States during the outgoing administration. The new government should reconsider the agreement from the perspective of national interest.
The CPD claimed that the administration led by Professor Dr. Muhammad Yunus has concluded a discriminatory agreement with the US government at the time of its departure, which may put pressure on trade and economic policies in the future.