NN Online:
Bangladesh’s foreign exchange reserves fell below the $20 billion mark after the country paid $1.5 billion in liabilities to the Asian Clearing Union (ACU) on Sunday. The reserves now stand at $18.19 billion, according to the Bangladesh Bank (BB), calculated under the IMF’s BPM6 standard.
Executive Director and Spokesperson of Bangladesh Bank Husne Ara Shikha confirmed the updated figures on Tuesday, noting the reserve decline after settling the ACU bill.
Data from Bangladesh Bank shows that reserves briefly touched $20 billion on Thursday, bolstered by remittance and exports. However, large payments like the ACU liability significantly impacted the balance.
Earlier, in September, a similar payment of $1.36 billion for July-August ACU bills reduced reserves to $19.44 billion.
In recent months, Bangladesh witnessed over $6 billion in remittances and $10 billion in export earnings, which provided some stability. Additionally, reduced pressure to open import Letters of Credit (LCs) allowed banks to maintain sufficient dollar liquidity, while inflows from foreign loans and central bank dollar purchases further contributed to reserves.
Bangladesh Bank tracks reserves in three categories. Total reserve includes various funds, IMF-compliant reserves are calculated under the BPM6 standard, and usable reserves reflect readily available foreign exchange.
For the first time in the country’s history, foreign exchange reserves crossed the $48 billion mark in August 2021. However, increased demand in the post-Covid economy and the Russia-Ukraine war led to dollar sales from reserves, reduced foreign loans and investment, and increased repayment of previous liabilities.