Bangladesh’s economy is showing signs of stability. The country’s central bank recently said that Bangladesh is going to pay about $2 billion to the Asian Clearing Union (ACU) for import bills for May and June – the highest bi-monthly payment in the last three years. The payment date is set for next Monday.
A senior central bank policymaker said,
আগামী সোমবার এই অর্থ পরিশোধ করা হবে। গতকাল পর্যন্ত দেশের বৈদেশিক মুদ্রার রিজার্ভ ছিল ২৬.৬৯ বিলিয়ন ডলার (বিপিএম৬ মানদণ্ড অনুযায়ী)। ফলে আকুর বিল পরিশোধের পরও রিজার্ভ ২৪.৫ বিলিয়ন ডলারের ওপরে থাকবে।
Translation: The amount will be paid next Monday. As of yesterday, the country’s foreign exchange reserves were $26.69 billion (according to BPM6 standards). As a result, even after paying the ACU bill, the reserves will remain above $24.5 billion.
What is the Asian Clearing Union (ACU)?
The ACU is a regional transaction settlement system headquartered in Tehran, Iran. Its member countries include: Bangladesh, India, Iran, Pakistan, Nepal, Sri Lanka, Maldives, Myanmar, and Bhutan. Through this platform, member countries settle import and export trade payments between each other on a bi-monthly basis.
Current Status of ACU Bill and Positive Indications
According to bankers, this increase in ACU Bill carries a positive economic message. It proves that the foreign exchange liquidity situation in Bangladesh’s banking sector is improving. The last payment for imports for the same period was $1.96 billion in July 2022. Then, the ACU Bill remained below $1.3 billion throughout last year.
However, the ACU Bill started increasing again from September-October 2023. It reached about $2 billion in May-June this year, which is undoubtedly a significant achievement.
Read more: After Land Port Ban, Bangladeshi Exports to India Now Shift to Sea Route
Stability and Improvement in Reserves
The reserves were $20.39 billion (BPM6 benchmark) at the end of July 2023. Following:
•27% growth in remittances
•8.5% growth in exports
The positive trends in these two important sectors have brought the country’s reserves to a stable and strong position. In addition:
•$1.35 billion from the IMF
•$900 million from the ADB
•$350 million from JICA
•$400 million from AIIB
Import Trend Analysis
According to Bangladesh Bank, the rate of import LC opening during July-April 2024 increased by 2.98% compared to the previous year. However, the analysis shows that:
•Consumer goods and industrial raw materials – imports increased
•Capital equipment – imports decreased by 27.5%
•Intermediate goods and petroleum – imports also decreased
According to experts, the decline in imports of capital equipment indicates a stagnation in the domestic investment situation. This could become a matter of concern for the economy in the long term.
Reasons Behind the Increase in Electricity Bills
When asked about the reason for the increase in electricity bills, the managing director of a private bank said,
‘আমাদের দেশের গ্রাহকদের চাহিদা আছে, ফলে আমদানি আমাদের চালিয়ে যেতেই হবে।’
Translation: “There is demand from our country’s customers, so we have to continue importing.”
He also said,
‘আকুভুক্ত দেশগুলো থেকে আমাদের একটা বড় অংশ আমদানি করতে হয়। বিশেষ করে কিছু নিত্যপ্রয়োজনীয় দ্রব্য ও রপ্তানির কাঁচামাল আমরা পার্শ্ববর্তী কয়েকটি দেশ থেকে আমদানি করি। ফলে ওইসব দেশের পেমেন্ট অবলিগেশনও কিছুটা বেড়েছে।’
Translation: “We have to import a large part of our goods from the countries included in the AQAP. Especially, we import some daily necessities and raw materials for export from some neighboring countries. As a result, the payment obligations of those countries have also increased somewhat.”
However, he said that Bangladesh’s overall imports, especially capital equipment imports, need to be further increased,
‘এটি দীর্ঘদিন নেতিবাচক অবস্থানে থাকা দেশে বিনিয়োগ পরিস্থিতির নেতিবাচক অবস্থানও নির্দেশ করে
Translation: “It also indicates a negative investment climate in a country that has been in a negative position for a long time.”
Source: TBS