Bangladesh is preparing to make its largest payment to the Asian Clearing Union (ACU) in three years, with approximately $2.02 billion due next week for imports conducted during May and June. This significant sum reflects a noticeable increase in trade volume with ACU member countries, indicating a positive trend in regional economic activities.The ACU is based in Tehran and is essential for helping its nine member countries, such as Bangladesh, India, Iran, Pakistan, Sri Lanka, and Myanmar, carry out trade payments within the region. Nepal, Bhutan, and the Maldives. This upcoming payment is for transactions covering the past two months and is a regular, bi-monthly settlement process within the ACU framework. While a large payment naturally leads to a temporary dip in Bangladeshโs foreign exchange reserves, central bank officials have expressed confidence in the country’s reserve position. They note that even after this payment, the gross foreign exchange reserves are expected to remain robust, currently standing well above $24.5 billion under the international BPM6 standard calculation. This strong standing is a result of consistent remittance inflows and other financial support. The increase in ACU payments is largely seen as a positive sign by bankers and economists. It suggests an improvement in foreign exchange liquidity within Bangladesh’s banking sector, allowing for a higher volume of imports. After a period where import restrictions were in place due to dollar scarcity, the rising ACU payments indicate a gradual easing of these measures and a return to healthier trade flows. This is particularly important as a significant portion of Bangladesh’s essential goods and raw materials for its thriving export industries, especially ready-made garments, are sourced from nearby ACU nations like India. Prior to 2022, Bangladesh routinely made ACU payments around the $2 billion mark. However, due to global economic pressures and a domestic dollar crisis, import restrictions were imposed, causing ACU payments to decline throughout 2023. The current surge, reaching a three-year high, signals a revitalized import sector and a more stable foreign exchange market. The ability to make such a substantial payment, supported by recent increases in remittance inflows, export earnings, and funds from international lenders like the IMF, ADB, JICA, and AIIB, underlines Bangladesh’s improving financial resilience and its commitment to fostering robust trade relationships within the region. This trend promises continued economic momentum and increased availability of goods for consumers and industries alike.
