Bangladesh’s gross foreign exchange reserves saw a decline after the country made a $1.37 billion payment to the Asian Clearing Union (ACU) for import settlements for July and August, as confirmed by central bank sources.
The ACU payments, scheduled every two months, led to a decrease in the country’s reserves from $20.8 billion to $19.46 billion, based on the IMF’s BPM6 calculation method. Meanwhile, using the Bangladesh Bank’s traditional valuation, reserves dropped from $25.87 billion to $24.53 billion following the payment.
Despite the fall, central bank officials remain optimistic, noting that the bank has halted dollar sales from reserves amid recent political shifts, and reserves are expected to rebound soon.
The ACU is a payment settlement system used for regional transactions among member countries, including Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
As of July 31, Bangladesh’s reserves stood at $20.39 billion under the BPM6 method and rose to $20.8 billion on Sunday, attributed to an increase in remittance inflow following the political transition on August 5.
The central bank has sold approximately $34 billion from its reserves over the last three fiscal years, contributing to the current depletion. This, coupled with a dollar shortage, has led to a weakening of the Bangladeshi taka, which has depreciated to Tk120 per dollar from Tk106 just a year ago.
The dollar crisis continues to strain banks’ ability to settle import payments and issue letters of credit, adding pressure on businesses. In response, the previous government, along with the central bank, had introduced various measures to limit imports and manage the dollar crunch.