Bangladesh’s foreign exchange reserves have fallen to $31.14 billion after the central bank paid import bills to the Asian Clearing Union (ACU) for the months of September and October, according to the Bangladesh Bank.
On Sunday (9 November), the central bank cleared a payment of $1.61 billion to the ACU, bringing the total reserves down from over $32 billion in the previous month. Despite the decline, officials at Bangladesh Bank said the reserve position remains stable, supported by a recent uptick in remittance inflows and export earnings. ACU Payment Cycle and Reserve Impact: The ACU is a regional payment mechanism that facilitates trade settlements among member countries - including Bangladesh, India, Bhutan, Nepal, Pakistan, Iran, the Maldives, and Myanmar. Payments are made every two months to settle import liabilities.
According to the central bank, the latest payment was part of routine settlement obligations for goods imported during September and October.
In August 2022, Bangladesh’s reserves reached a historic peak of $48.06 billion. However, subsequent years saw a steep decline amid rising import bills, currency depreciation, and widespread capital flight.
By July 2024 - just before the fall of the previous government - the reserves had dropped to $20.39 billion, raising serious concerns about external payment capacity.
After the formation of the interim government, Bangladesh Bank reportedly adopted stricter measures to curb money laundering and stopped selling large volumes of dollars from reserves. Even after clearing nearly $4 billion in overdue import bills left by the former administration, the central bank managed to stabilize reserve levels.
Reserve Composition and Sustainability: As of 6 November 2025, Bangladesh Bank’s official calculation placed gross reserves at $32.71 billion, while the IMF’s BPM6 standard - which excludes certain encumbered assets - recorded the figure at $28 billion.
In addition, central bank officials confirmed that the country’s net international reserves (NIR) - the usable portion of total reserves - currently stand close to $23 billion. This amount, they said, is sufficient to cover more than five months of import payments, exceeding the international benchmark of at least three months.
Economists view the current position as “manageable but fragile”, warning that any prolonged pressure on the taka, or renewed capital flight, could quickly erode reserves again.
What Is ACU: The Asian Clearing Union, headquartered in Tehran, is an intergovernmental mechanism established to simplify and reduce the cost of trade settlements among its member nations. Member central banks settle their net import bills every two months in US dollars or euros.
Currently, Sri Lanka’s membership remains suspended due to its inability to meet payment obligations amid its ongoing economic crisis.
Experts note that while the ACU system helps reduce dependency on global clearing networks, Bangladesh’s rising import payments under this framework highlight the need for better management of foreign exchange reserves and trade balances. Bangladesh Bank officials emphasized that the overall reserve level is still sufficient to ensure external payment stability, adding that policy focus now centers on boosting remittances, export diversification, and attracting foreign investment to rebuild the buffer in coming months.
