Foreign reserve funds now total $30.3 billion following a payment made by the ACU.

The Asian Clearing Union (ACU), an international transaction settlement system established in 1974 to facilitate intra-regional trade and promote economic cooperation among member countries, has played a significant role in boosting Bangladesh's foreign exchange reserves.

In September 2021, Bangladesh's foreign exchange reserves stood at a record high of $30.3 billion, an increase from the previous year's gross reserve of $19.46 billion. This growth can be attributed, in part, to the ACU settlement of $1.5 billion in import bills for July and August 2021.

The ACU settlement, however, does not affect the foreign exchange reserves of the central bank, as it is a bilateral settlement among member countries. The system does not involve any third-party countries or institutions, nor does it involve foreign exchange transactions between the member countries. Instead, each central bank pays their respective import liabilities every two months.

The ACU includes Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. The system helps to reduce the demand for foreign exchange by settling import bills among member countries, thereby providing a more stable and efficient means of conducting international trade.

Interestingly, the Central Bank of Bangladesh last made $1.5 billion in import payments through the ACU in the previous year, 2024. This consistent use of the ACU demonstrates its importance in Bangladesh's foreign trade operations.

Moreover, the ACU settlement does not affect the reporting of foreign exchange reserves to international organizations like the International Monetary Fund. On September 7, 2021, the forex reserves stood at $25.39 billion in the account of the International Monetary Fund.

In May-June 2025, the central bank paid $2.02 billion in ACU bills, further highlighting the system's ongoing role in Bangladesh's foreign trade. It is worth noting that the ACU does not charge any fees for its services, making it a cost-effective solution for member countries.

The ACU, established over four decades ago, continues to be a valuable tool for promoting economic cooperation and facilitating intra-regional trade in Asia. As more countries join the union, its impact on the foreign exchange reserves of member countries is likely to grow, providing a more stable and efficient means of conducting international trade in the region.

Foreign reserve funds now total $30.3 billion following a payment made by the ACU.