Gross forex reserve falls to $24b after ACU payment

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

Following the ACU settlement, Bangladesh's gross foreign exchange reserves under the IMF's Balance of Payments Manual (BPM6) stand at $24.45 billion as of today (8 July), down from $26.51 billion on 3 July.

The Net International Reserves (NIR) have also declined slightly, but remain well above the IMF's target.

What is the ACU?

The Asian Clearing Union is a regional payment settlement mechanism involving central banks from countries including Bangladesh, Bhutan, India, Iran, 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.

Bangladesh's reserve still 'Comfortable'

Bangladesh Bank's Executive Director and Spokesperson Arif Hossain Khan stated, "The country's reserve situation remains comfortable, so the recent ACU payment hasn't had a major impact."

This is the second ACU payment in recent months. 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.