Published: 12:13 AM, 30 March 2026
Central Bank Outlines Strategies to Tackle Crisis Caused by Middle East Turmoil: Governor
The government plans to get an additional $2.0 billion fund from the development partners to support BoP (balance of payment) through minimizing external shocks caused by the ongoing predicaments in the Middle Eastern countries. Bangladesh Bank (BB) Governor Md Mostaqur Rahman made the disclosure on Sunday during a consultation meeting with media professionals of the country's leading print media outlets regarding the central bank's current role in the context of ongoing turbulence in the Middle East after USA-Israel launched attacks on Iran.
"Though it is in the preliminary stage, we have already shared our plan to the IMF (International Monetary Fund) while ERD is also working with other sources for the BoP-supporting fund," Mostaqur Rahman said. The journalists present at the meeting voiced their concern over the negative impact on foreign currency reserves if the war in the Gulf Countries prolongs further as nearly 70 per cent of the $30 billion remittance comes from this region and it might badly impact the country's BoP position.
However, the central bank top officials who attended the meeting turned down the fear of immediate impact of the war that began on 28 February this year, saying that Bangladesh has enough stock of foreign currencies to tackle immediate shocks of the crisis if it arises. Governor Mostaqur Rahman stated that energy security remains another major concern. The Bangladesh government is exploring bilateral arrangements and diversified sourcing to reduce dependence on single suppliers and manage import costs. Long-term strategies are also being considered to ensure stability in energy supply, BB top functionaries said during the meeting.
The Governor said there should be no political influence in the financial sector. Instructions have been given to take decisions without any form of intervention from political quarters, Mostaqur Rahman informed reporters. He added that the central bank is working seriously to build up stronger governance and accountability.
Mostaqur Rahman said though the global success rate in terms of recovering stolen assets remains nominal, efforts are also underway to recover siphoned-off assets as majority of the banks signed NDA (non-disclosure agreement) with the global renowned firms. On the economic front, Mostaqur Rahman said, three priority sectors have been identified to stimulate growth: agriculture, small and medium enterprises (SMEs), and the revival of idle industrial production bases.
The central bank chief stressed the necessity of bringing underutilized factories back into production-even partially-to prevent further economic loss and maximize the use of national assets. The central bank also expressed concern over the country's low tax-to-GDP ratio, currently far below 7 percent, underlining the fact that both administrative reforms and increased economic activity are needed to improve revenue collection. In a major policy push, the Governor said, the central bank and other financial regulators are accelerating the transition to cashless transactions. The use of a unified Bangla QR payment system, "Bangla QR," will be made mandatory at all payment points by June 30, with enforcement measures, including penalties for non-compliance, expected from July 2026.
Officials believe this will increase transaction transparency, reduce cash handling costs, and boost revenue. BB Deputy Governor Dr. Kabir Ahmed said there will be no serious pressure as far as foreign currency reserves are concerned. The forex reserve stood at $34 billion now and the NOP (net open position) in banks rose to $800 million.
On the other hand, Dr. Kabir Ahmed said, they expect that the country would see at least $2.0 billion higher remittance inflow in this financial year (FY '26) from the figure of the previous fiscal (FY'25). Simultaneously, the IMF is expected to disburse two remaining installments involving Tk 1.20 billion of its $5.5 billion lending package for stabilizing Bangladesh's macroeconomic situations, he said. Dr. Kabir Ahmed also said the demand for US dollars is relatively low in the post-winter season. "So, there is no worry as far as forex reserve is concerned." BB deputy governors Nurun Nahar, Dr. Md. Habibur Rahman and Md. Zakir Hossain Chowdhury and BB spokesperson Arif Hossain Khan addressed the meeting among another few central bankers.
