No shortage of US dollarsMerged bank to be launched this week: BB Governor

Bangladesh Bank Governor Dr Ahsan H Mansur on Saturday said the new commercial bank, formed through the merger of five Shariah-based banks, is set to be officially launched this week.

The Governor made the remarks while speaking as the chief guest at the ‘4th Economic Summit’ held at a city hotel on Saturday.

Vernacular daily Bonik Barta organised the summit titled ‘Economies’ Future Trajectory and Political Commitment’.

Dr Mansur emphasised the significant economic challenges facing the current government, noting that future elected governments must fully comprehend these ‘accumulated problems’.

To ensure good governance, he said, the next elected government must guarantee the full independence of the central bank.

The Governor also advocated for a separate salary structure for Bangladesh Bank employees to ensure effective governance, monitoring, and supervision, pointing out that approximately 130 countries have already adopted this global practice for their central bank staff.

Dr Mansur highlighted the urgent need to develop the bond market and capital markets for sourcing long-term industrial investment.

“Banks cannot be the only source for industrial investment. When it happens, defaulted loans will shoot up. In Bangladesh, it is happening now,” he warned.

In a significant announcement for the business community, the Governor said Bangladesh Bank has withdrawn all restrictions and barriers on opening Letters of Credit (LCs). There are now enough US dollars in banks, allowing businesses to open LCs for any amount, he mentioned.

Dr Mansur noted a curious trend: despite the removal of restrictions, the monetary volume of LC openings has decreased while the quantity of goods imported has increased.

He attributed this change to the central bank's actions in stopping money laundering through over-invoicing of imported goods.

The event also featured speeches from other prominent figures, including Director General of BIDS Professor Dr AK Enamul Haque, Chairman of Ha-Meem Group AK Azad, CEO of City Bank Masrur Arefin, and President of BSMA and Chairman of GPH Group Mohammad Jahangir Alam.