Dhaka, Bangladesh (BBN) - Bangladesh’s foreign exchange (forex) reserves have remained above the US$34 billion mark despite a significant payment to the Asian Clearing Union (ACU), reflecting a relatively stable external sector supported by strong remittance inflows, steady export earnings, and subdued import demand.
According to the latest data from Bangladesh Bank, the country settled $1.37 billion in import payment obligations to the ACU member countries for the January–February 2026 period.
Following the payment, gross forex reserves declined to $34.10 billion on Sunday from $35.49 billion on the previous working day.
However, under the Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6) reporting framework of the International Monetary Fund (IMF), Bangladesh’s reserves stood lower at $29.38 billion, down from $30.76 billion earlier.
The BPM6 methodology excludes certain assets such as encumbered funds and deposits with local banks, providing a more realistic measure of usable reserves.
External Stability Despite Routine Outflows
Despite the decline following the ACU settlement, central bank officials say the reserve position remains comfortable. A senior official of Bangladesh Bank noted that the current reserve level is sufficient to cover more than five months of import payments, which is generally considered a safe threshold for external sector stability in developing economies.
The ACU payment itself represents a routine settlement mechanism for regional trade transactions. Member countries clear their outstanding import bills and related interest every two months through the multilateral arrangement.
Key Drivers Behind Reserve Stability
Several factors have contributed to the recent resilience in Bangladesh’s forex reserves:
1. Strong Remittance Inflows
Remittance inflows from expatriate Bangladeshis have remained robust, providing a steady supply of foreign currency to the banking system.
2. Stable Export Growth
Export earnings—particularly from the ready-made garment sector—have continued to grow steadily, supporting the balance of payments.
3. Lower Import Demand
A moderation in import payments, partly due to cautious business spending and earlier policy tightening, has reduced pressure on reserves.
4. Central Bank Dollar Purchases
The central bank of Bangladesh has also actively intervened in the foreign exchange market. Since July 13 last year, the central bank has purchased $5.49 billion from commercial banks under the country’s prevailing market-based or free-floating exchange rate regime. Such purchases help rebuild reserves when dollar supply improves in the interbank market.
Declining ACU Payment Signals Softer Imports
The latest ACU payment of $1.37 billion is lower than the $1.53 billion settled in the previous cycle, largely reflecting reduced imports from ACU member countries.
Bangladesh mainly imports consumer goods, cotton, industrial raw materials and capital machinery from these regional partners, particularly from neighbouring India.
The ACU currently includes Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan, Sri Lanka and the Maldives, enabling participating central banks to settle intra-regional trade transactions on a multilateral basis.
BBN/SSR/AD