The foreign exchange reserves of Bangladesh fell below US $20 billion after paying $1.75 billion liabilities of Asian Clearing Union (ACU), said Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, on Sunday. According to Bangladesh Bank data, the country's gross foreign exchange reserves have dropped to $25 billion after paying the ACU’s bill. As per the standard of the International Monetary Fund's (IMF) BPM-6 calculation, the reserve is now $19.70 billion. NBR launches customs risk management to address money laundering Earlier, on March 6, the gross foreign exchange reserve was $26.60 billion. As per the BPM-6 it was $21.40 billion. The Asian Clearing Union (ACU) is a payment arrangement designed to facilitate the settlement of import and export transactions among its member countries. Currently, its members include Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka, with their respective central banks serving as participants in the system. By enabling transactions in a structured manner, the ACU helps streamline trade payments and reduce the need for hard currency reserves in bilateral trade among these nations. The Balance of Payments and International Investment Position Manual, 6th edition (BPM-6), is the IMF's standard methodology for compiling balance of payments and international investment position statistics. It provides a more accurate measure of usable reserves by ensuring consistency in reporting across countries. The difference between gross reserves and BPM-6 reserves arises because the IMF method excludes certain types of reserves that are not readily available for use, offering a clearer picture of a country's liquid foreign exchange holdings.

Despite relaxed conditions for net reserves by the International Monetary Fund (IMF), Bangladesh could not meet the foreign exchange reserves target at the end of 2023. According to the IMF loan documents, the actual reserves were supposed to be USD $17.78 billion at the end of December 2023. However, as the year ended, the actual reserves stood at about $16.75 billion. Not much difference between political parties' views on energy situation: CPD Bangladesh Bank could not meet the reserves target as per IMF conditions by September-end as well. Later, the global lender reduced the reserves conservation target at the request of Bangladesh. Even the revised target could not be achieved by the end of December 2023. According to IMF's new conditions, the real reserves are expected to be $19.26 billion in March and $20.10 billion in June 2024. However, financial sector stakeholders cannot determine whether this goal will be achieved. The real reserve is the reserve that is calculated after excluding the SDR of the IMF, the dollars kept as foreign exchange clearing by the banks, and the dollars deposited for the Asian Clearing Union (ACU) bills. Apart from this, there are two other accounts of reserve. One of them is total reserve. Another IMF accounting system is reserves maintained under BPM6. At the end of the year 2023, total forex reserves increased to $27 billion. However, what the IMF considers is only net or real reserves. Md Mezbaul Haque, spokesperson and executive director of Bangladesh Bank told UNB that the central bank worked to keep the reserves above $17 billion, as per the IMF-set target. Former IMF economist Dr Ahsan H Mansur told UNB that it is unexpected that the IMF-set target could not be met even after reducing the previous target. Habiganj-2: JaPa candidate withdraws from election citing 'lack of fair environment' He also doubted that Bangladesh Bank will be able to maintain IMF’s foreign exchange reserves target in March 2024, if the central bank does not change its policies.