To be able to perform its functions as a banking sector regulator, implement monetary and credit policies aimed at curbing inflation, ensuring price stability and do other related functions effectively, the Bangladesh Bank (BB) should have the required autonomy. But certain provisions of the Bangladesh Bank Order (BBO) 1972, under which the BB operates, constrain its power to do whatever is necessary to achieve its objectives. Those include, for instance, the establishment of discipline in the financial sector, taking measures to curb inflation and stabilising consumer price, to adopt monetary policies, managing  foreign exchange reserves, advising the government on economic policy and so on.

So, effecting the long-awaited amendment to the BBO is a pressing issue. The draft ordinance to this effect prepared by the interim government last month (August 2025) on the process of appointing the BB governor vested with necessary autonomy, among other reforms, was supposed to be deliberated upon at a recently held meeting of the BB's governing board. But as reported in the September 1 issue of this paper, the responsible central bank officials could not place the draft on BBO reform for discussion at the BB's last governing board meeting. The reason was, as reported referring to some BB officials concerned, "non-cooperation of the government secretaries" on the BB's 9-member governing board. This was unfortunate, particularly at a time when the interim government is in a race against time to complete as many of the vital reform agenda it has undertaken before holding the next general election. In this context, the urgency of reforming the BBO cannot be gainsaid. So, any delay in the process of amending the BBO has the potential to stymie the very effort towards granting the BB governor the sought-after autonomy. For, once finalised at the BB board meeting, the draft could be forwarded to the government for its early approval before passing as the BBO amendment ordinance.

But to all appearances, the process has been stalled for the time being. So, one wonders, what was here the exact nature of the proverbial slip between the cup and the lip that led the BB's governing board to defer the necessary deliberations indefinitely as its next meeting date is yet to be fixed.

True, the bureaucracy has the notoriety of often sweeping many burning issues under the carpet. But in this particular case of  BBO amendment, no excuse is acceptable given the central bank's past legacy of becoming a mere tool in the hands of civil service, and, by default, the politics in power, to serve vested interests.

Allegedly, some members of the BB's governing board who happens to be government secretaries rejected the suggestion that the proposed draft of the amended BB order was not put up for discussion at the said governing body meeting of the BB. On the contrary, they reportedly pointed to some observations they claimed to have made about the draft that needed correction before being placed at the next governing board meeting. While giving due considerations to their point, the fact remains that the exercise of finding the lacunae in the draft and correcting those could well be done more expeditiously without unnecessarily delaying the process because time is so precious in the present context. To be frank, it is time the central bank gets the autonomy to function without unnecessary government control once it is established as a constitutional entity. In that case, it is imperative that the bottlenecks, if any, in the process of finalising the draft of the amended BB Ordinance are removed sooner rather than later.