Bangladesh’s foreign exchange reserves fell below $20 billion today, down from $21.39 billion, after the country paid $1.75 billion in regional import bills through the Asian Clearing Union (ACU).
The ACU, a payment settlement system for nine member countries, requires Bangladesh to clear import bills every two months. This recurring payment cycle temporarily reduces the country’s forex reserves.
As of March 6, Bangladesh’s reserves stood at $21.39 billion, calculated under the International Monetary Fund’s (IMF) BPM6 manual.
A steady rise in remittance inflows in recent months has helped cushion the decline in foreign exchange reserves. The trend has been particularly notable since August 5 last year, when the Awami League-led government fell following a mass uprising.
In February, remittance inflows surged 25% year-on-year to $2.52 billion, as migrant workers sent higher-than-expected amounts to support their families ahead of Ramadan and Eid shopping.
