Highest payment in 3 years won’t bring reserves below $20 billion
Today, Tuesday (May 6), Bangladesh will make a big payment of $1.88 billion to the Asian Clearing Union (ACU) to settle import bills for the months of March and April. This is the highest ACU payment made in the past three years.
Even though this is a large amount, the Bangladesh Bank says that the country’s foreign exchange reserves will still remain above $20 billion, which is a positive sign for the economy.
What is ACU and Why is This Payment Made?
The Asian Clearing Union (ACU) is a financial group based in Tehran, Iran. It helps with trade payments between nine countries in Asia: India, Bangladesh, Bhutan, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
Bangladesh trades with these countries and buys many goods. Every two months, Bangladesh pays the ACU for its imports from these countries.
The last ACU payment was made on March 9, for goods imported in January and February, and that payment was $1.75 billion. At that time, the foreign reserves dropped below $20 billion, but they later increased again.
Current Status of Foreign Reserves
According to data from the Bangladesh Bank, the country’s foreign currency reserve was $21.97 billion on May 4. So, even after making today’s large payment, the reserve will still remain above $20 billion, which is a good sign.
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Why Has the ACU Bill Increased?
In recent years, ACU payments were lower. But starting in September-October 2024, Bangladesh started importing more goods again. This is why the ACU payment has gone up to $1.88 billion now — the highest in three years.
In 2023, all the ACU payments were below $1.3 billion. This increase now means that more goods are being imported, and the economy may be gaining momentum.
What Happened in the Past?
Before 2022, Bangladesh used to pay almost $2 billion every month to the ACU. But during the dollar shortage, the Bangladesh Bank placed restrictions on imports to save money. This caused the ACU payments to go down, because the country imported fewer goods.
Now, an official from Bangladesh Bank says that things are improving. “The foreign reserves are more stable now, and the exchange rate is also steadier,” he explained. “That’s why imports are increasing again, especially from ACU member countries. As a result, our ACU payments have also gone up.”
How Are Reserves Staying Strong?
Another high-level official at the central bank said that the reserves crossed $22 billion recently — the first time since July 2023, when reserves were around $20.39 billion. Even after today’s large payment, reserves will remain healthy.
He explained, “This improvement has been possible because of two things: a 28% growth in remittances (money sent home by people working abroad), and more than 10% growth in exports.”
Import Trends This Year
From July 2024 to March 2025, Bangladesh opened more import letters of credit (LCs) — about 4.79% more compared to the same time last year. This means more goods were ordered for import, especially consumer goods, industrial raw materials, and essential products.
However, imports of heavy machinery dropped by 26%, and imports of intermediate goods and petroleum products also decreased.
What Do Bankers Say?
Syed Mahbubur Rahman, the Managing Director and CEO of Mutual Trust Bank, said, “Because there is demand inside the country, we have to continue importing goods. A large part of our imports comes from ACU countries — especially essential items and export-related raw materials.”
He added, “We’ve also cleared many overdue import payments. The growth in exports and remittances has helped us manage this large payment. We’re now more aware of the remittance market, and we must continue this trend going forward.”
Source: TBS
