Written by The Banking Post
Foreign exchange reserves at Bangladesh Bank fell under the $25 billion mark after a $2.02 billion payment to the Asian Clearing Union (ACU), the central bank’s Executive Director and spokesperson, Arief Hossain Khan, said on Tuesday.
Reserve Levels Post-Settlement
- BPM6 Reserves: $24.45 billion (down from $26.68 billion on July 2)
- Gross Reserves: $29.52 billion (down from $31.71 billion on July 2)
- Net/Usable Reserves: Not disclosed
ACU Payment Impact
- $2.02 billion disbursed to settle two months’ import liabilities via ACU
- Bangladesh typically settles about $1.25 billion every two months under the ACU mechanism
Understanding Reserve Metrics
- Gross Reserves include all foreign assets, including IMF funds and gold holdings.
- BPM6 Reserves follow the IMF’s Balance of Payments Manual, 6th edition.
- Usable Reserves represent the portion available for market interventions.
About the Asian Clearing Union
- Established: December 9, 1974, under UNESCAP initiative
- Headquarters: Tehran, Iran
- Members: Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan, Sri Lanka (withdrawn), Maldives
- Settlement Cycle: Bimonthly clearance of trade payments
Implications for Banking Sector
- Reserves bolster Bangladesh Bank’s capacity to stabilize the taka and support import financing.
- A sustained drawdown heightens the need for robust remittance inflows, export earnings and prudent ACU usage.
- Market watchers will monitor reserve trajectories as a barometer of external-sector resilience.
