Abdur Rouf Talukder resigned from the post of governor of the Bangladesh Bank on Friday, four days after Sheikh Hasina stepped down as prime minister and fled the country in the face of a mass uprising.

A former secretary of the finance ministry, Talukder was the 12th governor of the country's central bank.

Now, the question on everyone's mind is who will be the next person assigned to the post at a time when the economy is facing numerous challenges.

An interim government, led by Dr Muhammad Yunus, was sworn in last Thursday, with Salehuddin Ahmed, a former governor of the Bangladesh Bank, taking charge of the finance and planning ministries.

After a meeting at the finance ministry yesterday, Ahmed told journalists that they had received Talukder's resignation letter but it was not yet finalised.

Read more

Bangladesh Bank governor resigns

Industry people said Ahmed must play a key role in finding and recommending a suitable governor of the central bank, which will be approved by Yunus.

They also said people with vast knowledge of the country's economy and banking sector as well as work experience at the central bank or another financial institution should be prioritised as replacements.

So far, names of top economists, former chief economists of Bangladesh Bank, economic experts and professors, and economists who worked at global organisations like the World Bank and International Monetary Fund have come up.

This means that no bureaucrats like former governors Talukder and Fazle Kabir will be recommended for the post by the interim government, said a finance ministry official seeking anonymity.

Talukder was appointed as the central bank governor in July 2022, when Bangladesh was facing rising inflation, falling foreign currency reserves and depreciation of the taka.

However, he was unable to properly address these issues during his tenure, with the banking sector suffering from a high value of bad loans and other irregularities amid increased inflationary pressures and the deterioration of cooperate governance at banks.

Zahid Hussain, a former lead economist of the World Bank's Dhaka office, told The Daily Star that the government will have to prioritise three characteristics in finding a new governor for the central bank.

First, the new governor must be honest. Second, they must have vast knowledge of the country's financial sector. They will also have to learn about the private sector, capital market and insurance sector as these are vital for the economy, Hussain said.

Emphasising that the banking sector is the main pillar of the financial sector, he said the third trait the next governor must possess is the bravery to tackle unwanted interference from different quarters, including political influence.

Additionally, they must know the different owners of banks and their balance sheets.

"The autonomy of the central bank is largely dependent on the head of the institution. So, the new governor will also have to work independently," Hussain added.

However, he also said finding such a qualified governor would be difficult and suggested that a young, enthusiastic individual be nominated to lead the banking sector.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said: "We need a professional governor who will speak the truth."

Rahman also said the banking sector should be helmed by someone who is vigilant and brave enough to help prop up the financial sector.

"The new governor will have to show some bravery after joining to get quick acceptance," he added, citing that the country needs someone who will work for long-term economic betterment in this position.

Rahman, a former chairman of the Association of Bankers Bangladesh, suggested that it is not essential to choose the new governor from those currently serving within the country.

He noted that, as seen in other nations, the position could be filled by Bangladeshi citizens working abroad.