Foreign exchange reserves have fallen below $20 billion after the central bank cleared a $1.75 billion payment to the Asian Clearing Union (ACU), Bangladesh Bank spokesperson Arif Hossain Khan said on Sunday.

According to Bangladesh Bank data, the country’s gross foreign exchange reserves now stand at $25 billion, while reserves calculated under the International Monetary Fund’s (IMF) BPM-6 standard have dropped to $19.70 billion.

On March 6, Bangladesh’s gross reserves were $26.60 billion, and BPM-6 reserves stood at $21.40 billion.

The Asian Clearing Union (ACU) is a regional payment system that facilitates import and export settlements among its nine member countries—Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. By streamlining transactions, it reduces the need for hard currency reserves in bilateral trade.

The IMF’s Balance of Payments Manual (BPM-6) provides a more accurate measure of usable reserves by excluding assets that are not readily accessible. The difference between gross reserves and BPM-6 reserves reflects these adjustments, ensuring consistency in reporting across countries.

Bangladesh’s declining reserves highlight ongoing challenges in maintaining external financial stability amid growing import payments and debt obligations.