Ahsan H. Mansur, Governor of Bangladesh Bank, announced that the central bank will not resort to printing money or selling dollars from reserves to tackle financial sector challenges. Instead, the focus is on providing liquidity support from other banks. He stressed that printing money would only offer temporary relief and exacerbate human suffering, while the primary objective remains to control inflation. Mansur, who recently assumed office, intends to establish three task forces for banking sector reforms, with one already in place. He reported that around 10 to 11 struggling banks are under increased supervision, and there are signs of recovery, as deposits in crisis-hit banks rose by Tk 400 crore recently.
He noted that the foreign exchange market is stabilizing, with the kerb market price of the dollar now lower than that in the interbank market. However, concerns about bad loans remain, with experts calling for clearer figures on defaulted loans. Mansur reiterated the necessity of a tight monetary policy to combat inflation, despite its potential adverse effects on businesses. He also emphasized the need for a competitive banking sector and the importance of functional and inclusive associations. Various experts and banking leaders participated in the discussion, underlining the urgency of effective reforms in the sector.
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