Bangladesh reserves above $24b even after making $2b ACU payment 

Despite making a substantial payment of $2.02 billion in import bills through the Asian Clearing Union (ACU), the Bangladesh Bank has managed to maintain a relatively stable foreign exchange reserve position.

Following the ACU settlement, Bangladesh’s gross foreign exchange reserves, as per the IMF’s Balance of Payments Manual (BPM6), stood at $24.45 billion as of today, down from $26.51 billion on 3 July.

The Net International Reserves have also declined slightly, but remained well above the IMF’s target. The IMF, in its latest review under the $4.7 billion loan package, cut the ceiling for June net foreign exchange reserves to $14.76 billion from the earlier target of $20.1 billion.

What is ACU?

The Asian Clearing Union is a regional payment settlement mechanism that involves central banks from countries including Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, and Pakistan. Member countries pay their import dues to each other every two months through this system.

Notably, Sri Lanka is currently suspended from ACU participation due to its ongoing economic crisis and inability to meet its international payment obligations.

‘Reserves still in comfortable position’

Bangladesh Bank’s Executive Director and Spokesperson Arief Hossain Khan said, “The country’s reserve situation remains comfortable, so the recent ACU payment hasn’t had a major impact.”

On 6 May, Bangladesh paid $1.88 billion for March-April imports, which had brought reserves down to near $20 billion under the BPM6.

However, recent foreign loan inflows from international institutions like the World Bank and the IMF have boosted reserves by nearly $4 billion, easing pressure.