Government to Settle $2 Billion ACU Bill Next Week, Highest in Three Years

May–June import payments boost ACU settlement to $2 billion; strong remittance and export inflows keep reserves above $24.5 billion

Jul 3, 2025 3 min read

Bangladesh will pay nearly $2 billion to the Asian Clearing Union (ACU) for May–June imports next Monday, marking the largest bi-monthly settlement since July 2022. Despite this hefty outflow, foreign exchange reserves are projected to remain robust.

Payment Details and Reserve Impact

Amount: Approximately $2 billion for May–June import dues
Payment Date: Next Monday, per a senior central bank official
Reserves Buffer:
Stand at $26.69 billion (BPM6 basis) as of yesterday
Will hover above $24.5 billion after the ACU settlement

Bangladesh clears its ACU obligations every two months. The previous payment—$1.88 billion on 7 May for March–April imports—left reserves above the $20 billion mark under BPM6 standards.

ACU Mechanism and Regional Trade

Headquarters: Tehran
Members: India, Bangladesh, Bhutan, Iran, the Maldives, Myanmar, Nepal, Pakistan, Sri Lanka
Purpose: Simplify multilateral clearing of intra-regional trade payments

Historically, Bangladesh paid around $2 billion per cycle before 2022. Dollar-scarcity-driven import curbs slashed ACU settlements below $1.3 billion throughout 2023. Payments have now trended upward since late 2023, hitting the $2 billion threshold again this month.

Drivers of Rising Imports

A combination of factors has fuelled recent import growth:

Improved Forex Liquidity:
Remittances up 27% year-on-year
Exports up 8.5%
Multilateral Inflows:
$1.35 billion from the IMF
$900 million from ADB
$350 million from JICA
$400 million from AIIB

In the first ten months of FY25, import LC openings rose 2.98% compared to the same period last year. While consumer goods and industrial raw material orders climbed, capital machinery imports fell by 27.5%.

Banker Perspectives and Outlook

“High consumer demand necessitates continued imports,” said a private bank MD. He noted that many essential and export-oriented raw materials come from ACU nations, pushing up payment volumes.

However, he cautioned that slumping capital machinery imports reflect subdued private investment. To sustain growth, Bangladesh must reverse that decline and boost machinery imports, he added.

Bottom Line: The record ACU payment underscores a gradual rebound in import activity backed by stronger forex reserves. Policymakers and bankers will watch capital machinery orders closely as a barometer of investment revival.