Banks asked to use ACU mechanism for import payments
Imports from ACU-member countries typically exceed exports, and Bangladesh pays $1-1.5 billion every two months to cover the trade imbalance
The Bangladesh Bank has instructed banks to use the Asian Clearing Union (ACU) mechanism for settling payments for goods imported from ACU member countries.
The Bangladesh Bank's Foreign Exchange Policy Department issued the directive today (25 September).
This directive aligns with the guidelines outlined in the Foreign Exchange Transactions-2018, which details the operational procedures for such transactions.
The central bank noted that many banks have been deviating from the ACU mechanism, using traditional payment methods instead.
Banks are asked to refrain from such practices with advice to adhere to ACU mechanism for respective transactions.
According to senior officials at the central bank, Bangladesh benefits from using the ACU payment channel due to its import-dependent economy. Imports from ACU-member countries typically exceed exports, and Bangladesh pays $1-1.5 billion every two months to cover the trade imbalance.
This arrangement allows Bangladesh to retain the equivalent dollar amount for nearly two months after the import payment is due, offering the opportunity to earn interest or invest these funds during that period, said the officials.
However, some banks have been using traditional payment methods for imports from ACU countries instead of the ACU mechanism, causing Bangladesh to miss out on this benefit.
Therefore, banks have been instructed to follow the proper payment procedure to ensure the country retains these financial advantages.