The Bangladeshi government failed to exercise sufficient rigour in appointing the new central bank governor, a leading Dhaka-based research body said on Saturday, criticising the process as opaque.

“The government could have avoided such controversy by appointing a more acceptable individual,” Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), told a media briefing in Dhaka. “Qualified and experienced alternative candidates were available to the government.”

Moazzem praised the immediate past governor’s role in recent financial sector reforms, saying “much of the progress stemmed from his (the former governor’s) personal initiative”. He added that the former governor advanced reforms despite obstacles and pressure from vested interests, drawing on his expertise and experience.

The new administration should have retained him to ensure continuity, Moazzem said. “The government could have continued with him for reforming the financial sector.”

He also pointed to the absence of clear, legally defined criteria for appointing the Bangladesh Bank governor, noting that existing rules stipulate only a minimum age. The process should be placed under a legal framework with defined qualifications, he said.

Citing India’s Reserve Bank, the CPD research director said a finance ministry-led committee screens candidates and interviews them on the basis of experience, institutional leadership and higher academic credentials.

CPD recommended forming an independent committee to shortlist candidates for key state posts, including the governor, before a final appointment.

Moazzem also urged the prime minister to ensure the former governor receives a dignified send-off.