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Nobel Laureate Muhammad Yunus Proposed as Head of Bangladesh’s Interim Government Following Hasina’s Resignation

In a major political upheaval, Nobel Peace Prize laureate Muhammad Yunus has been proposed to head Bangladesh’s interim government, a day after Prime Minister Sheikh Hasina resigned amidst escalating unrest. Nahid Islam, a key organizer of the student protests, announced the proposal in a social media video, stating that student leaders had already discussed the role with Yunus, who agreed to take on the responsibility given the country’s current crisis.
Yunus, celebrated for his pioneering work in microlending which earned him the Nobel in 2006, has called Hasina’s resignation “the country’s second liberation day.” During Hasina’s rule, Yunus faced several corruption charges, which he claims were motivated by political vengeance. His potential leadership comes at a time when the nation is grappling with high unemployment, corruption, and climate change issues.
Hasina’s resignation followed weeks of violent protests triggered by opposition to a quota system for government jobs, which evolved into a broader challenge to her 15-year rule. The unrest culminated in violent clashes, leaving over 100 people dead and hundreds injured. Thousands of demonstrators stormed her official residence and other buildings associated with her party and family, leading to significant instability in the country.
General Waker-uz-Zaman, the military chief, announced that the military would form an interim government, and efforts were being made to restore order. President Mohammed Shahabuddin, after meeting with General Waker-uz-Zaman and opposition politicians, declared that parliament would be dissolved, and a national government would be established to lead to fresh elections.
Amid the chaos, the main opposition Bangladesh Nationalist Party (BNP) urged restraint, emphasizing that the spirit of the revolution should be maintained through due process. Tarique Rahman, the acting chairman of the BNP, called for calm, warning against taking the law into one’s own hands.
Internationally, the United Nations human rights chief, Volker Türk, emphasized that the transition of power in Bangladesh must align with international obligations and be inclusive. The UN’s call for a peaceful and lawful transition underscores the global concern over the unfolding events in Bangladesh.
The unrest has deepened economic distress in Bangladesh, with falling exports and dwindling foreign exchange reserves. General Waker-uz-Zaman assured the public that the military would investigate the crackdown that led to significant bloodshed since mid-July, promising accountability for those responsible.
The path forward remains uncertain, with the military wielding significant influence in a country that has experienced numerous coups since its independence in 1971. While Hasina’s resignation has been a pivotal moment, it remains to be seen whether it will bring an end to the turmoil or mark the beginning of a new chapter of instability.
Crowds continue to protest, ransacking buildings associated with Hasina’s government, highlighting the deep-seated frustrations within the population. As Bangladesh navigates this tumultuous period, the formation of an interim government led by Yunus could be a crucial step towards stabilizing the nation and addressing the grievances of its people.
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Russia Demands SWIFT Reconnection as Condition to Revive Black Sea Initiative
Russia has set forth a key demand for the restoration of the Black Sea Initiative—reconnecting its Agricultural Bank, Rosselkhozbank, to the SWIFT financial system. This request, which falls under the jurisdiction of the European Union (EU), comes amid ongoing negotiations between global powers on the war in Ukraine.
Partial Ceasefire and Black Sea Security Agreement
Following recent talks in Saudi Arabia, the United States announced that Russia and Ukraine had agreed to a partial ceasefire specifically covering energy facilities. While this fell short of the broader ceasefire pushed by former President Donald Trump, the parties also agreed on measures to ensure the safe navigation of commercial vessels in the Black Sea and to prevent their use for military purposes.
However, the Kremlin quickly detailed additional conditions, demanding the lifting of sanctions on food exports, fertilizers, agricultural machinery, and cargo insurance. Most notably, Russia is insisting that Rosselkhozbank and other financial institutions involved in agricultural trade be reinstated on SWIFT, a global messaging system that facilitates secure financial transactions.
EU’s Role and Sanctions History
SWIFT, headquartered in Belgium, falls under EU regulations. In response to Russia’s invasion of Ukraine, the EU removed several Russian banks from SWIFT in 2022, including Sberbank, Credit Bank of Moscow, and Rosselkhozbank. The exclusion was a significant blow to Russia’s financial system, as it restricted the country’s ability to conduct international transactions.
Rosselkhozbank, a state-owned institution, plays a critical role in facilitating payments for Russia’s agricultural exports, a major revenue source through the global sale of wheat, barley, and corn. While the EU has not directly sanctioned Russian agricultural exports, the banking restrictions have complicated payments for these transactions, leading to the collapse of the initial Black Sea Initiative brokered by Turkey and the United Nations.
Diplomatic Tensions and Uncertain Outcomes
The demand to reinstate Rosselkhozbank puts the EU in a difficult position. Granting this request could signal a willingness to make concessions, potentially encouraging Russia to seek further sanctions relief. However, refusing it could provoke tensions with the Trump administration, which is eager to secure a ceasefire.
President Volodymyr Zelenskyy has consistently opposed easing sanctions, arguing that they must remain in place until Russia ends its military aggression. European Commission President Ursula von der Leyen echoed this stance, stating that sanctions would only be lifted after Russia takes concrete steps toward peace.
As EU sanctions require unanimous renewal every six months, any member state could disrupt the process. Hungary, which has previously expressed opposition to sanctions, could leverage this situation to push for changes when restrictions are up for review on July 31.
Future of SWIFT and Global Financial Pressures
While the EU holds the power to reinstate Rosselkhozbank’s SWIFT access, the U.S. could signal leniency by ensuring that those engaging with the bank avoid legal repercussions. Analysts suggest that Russia’s demand may be a strategic move to test both Washington and Brussels, pressuring the EU to reconsider its stance on financial restrictions.
For now, the EU remains firm in its approach. France has indicated that sanctions should remain unless Russia agrees to a full ceasefire, reparations, and security guarantees for Ukraine. However, with negotiations ongoing and international pressure mounting, the debate over SWIFT and broader sanctions relief is unlikely to fade anytime soon.
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