Dhaka, August 10, 2024 – In a significant development, Bangladesh Bank Governor Abdur Rouf Talukder has resigned, citing health concerns. The resignation comes at a crucial time, just four days after former PM Sheikh Hasina stepped down and fled the country amidst a growing uprising.
Resignation Details
Abdur Rouf Talukder, who took over as the 12th governor of Bangladesh Bank in July 2022, submitted his resignation virtually to the finance ministry. His decision followed intense pressure from within the central bank, including protests by over 100 officials demanding his departure. Talukder had been absent from his office since the protests began.
Challenges During Tenure
Talukder’s tenure was marked by significant economic challenges, including rising inflation, a decline in foreign exchange reserves, and the depreciation of the Bangladeshi taka. Despite his efforts, the central bank struggled to stabilize these issues. Inflation reached 9.7% in the fiscal year 2024, the highest in 12 years, further eroding public confidence in the central bank’s policies.
Economists have pointed to the central bank’s reluctance to allow market forces to determine interest and exchange rates as a key factor in these challenges. Talukder’s close association with the former Prime Minister also drew criticism, particularly after his initiative to merge weak banks with stronger ones to address the banking sector’s vulnerabilities.
Controversies and Criticisms
The governor’s tenure was not without controversy. He faced backlash for imposing restrictions on journalists’ access to the central bank, a move that was later reversed following the fall of Sheikh Hasina’s government. These controversies, combined with the central bank’s inability to address key economic issues, led to mounting pressure for his resignation.
What’s Next?
As the country navigates through political and economic instability, the resignation of the central bank governor adds another layer of uncertainty. The next steps for the central bank and its leadership will be closely watched, as the nation grapples with the ongoing economic and political crises.
