Bangladesh Bank Governor Ahsan H Mansur has warned that the nation’s financial sector has been significantly constrained in recent years due to large-scale money laundering. Speaking on Monday, 15 December, as the chief guest at a discussion in Cox’s Bazar organised by Bangladesh Bank as part of its cashless promotion campaign, he emphasised the urgent need to revive and expand the financial system.
“Now, we must look to expand the financial sector by increasing the money supply. This cannot, however, be achieved simply by printing more money,” he stated. “Instead, the money supply should grow organically, through proper economic channels.”
The central bank is actively promoting cashless transactions across the country, aiming to reduce reliance on physical currency. Under this initiative, a two-day awareness programme on the use of Bangla QR codes was held in Cox’s Bazar on Sunday and Monday, with SSL Commerz serving as the lead partner. To date, similar cashless promotional events have been organised at 11 locations outside Dhaka, with plans to extend the campaign nationwide.
The keynote presentation was delivered by Rafeza Akhter Kanta, Director of the Payment Systems Department at Bangladesh Bank, alongside MD Perwez Anzam Moonir, Additional Director. At the event, Governor Mansur highlighted that the country’s foreign exchange reserves have surpassed $32 billion, which has contributed modestly to the domestic money supply.
He stressed that increasing money supply must be carefully managed to avoid inflation. “Compared to countries such as China, India, and Vietnam, Bangladesh’s money supply relative to GDP remains considerably low,” he noted. He added that greater inflows of foreign currency via remittances, foreign investment, and loans could strengthen the banking sector, emphasising that sector-wide growth cannot occur without boosting the overall money supply.
Governor Mansur also underscored the importance of returning funds previously moved abroad, stating, “If those funds had remained within the economy, our current situation would be far better. These resources must be gradually repatriated through proper channels.” He advocated for stronger focus on credit card usage alongside debit cards, noting that fintech and financial inclusion are intrinsically linked. “All conventional banks will eventually evolve into digital banks, which may take 10–15 years. Investment in this sector is essential,” he added.
The discussion included presentations on digital transactions and financial inclusion, highlighting that 28% of transactions in Bangladesh are currently digital, with growth limited by a lack of public awareness. Initiatives such as the provision of low-cost smartphones to grassroots merchants aim to boost adoption of digital payment systems. Managing directors of several banks stressed the need for an ecosystem-wide approach to cashless transactions, including incentives for small merchants and reduction of transaction costs.
Governor Mansur concluded by reiterating the transformative potential of a well-managed, digitally inclusive financial sector in driving economic growth and modernisation across Bangladesh.