Forex reserves reach $20bn

Bangladesh Bank's foreign exchange reserves have reached $20 billion.

The central bank said on Thursday that under the BPM6 method prescribed by the International Monetary Fund (IMF), the reserves stood at $20.09 billion., while the gross reserves were recorded at $25.26 billion.

Earlier this month, the reserves had dipped below the $20 billion mark following Bangladesh Bank's settlement of import bills under the Asian Clearing Union (ACU), bdnews24 reports.

Arief Hossain Khan, executive director and spokesperson for the central bank, told bdnews24.com that $1.75 billion had been paid towards ACU dues over the past two months.

As of Mar 6, the central bank's data showed reserves at $21.40 billion under the BPM6 method.

Bankers attribute the recent increase in reserves to rising remittance inflows and export earnings.

Bangladesh Bank maintains three categories of reserve data: total reserves, which include different funds; reserves calculated as per IMF standards; and usable reserves.

The ACU was established on Dec 9, 1974, under the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

Membership in ACU is open to central banks of countries within ESCAP's geographical framework.

The organisation's headquarters is in in Iran's Tehran.

The current ACU members are Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan, Sri Lanka, and the Maldives.

However, Sri Lanka exited ACU in October 2022 due to its foreign exchange crisis.

ACU members settle their import-export liabilities every two months.

Bangladesh Bank typically clears around $1.25 billion in dues per cycle.