Bangladesh’s FX reserves dropped to USD 21.5 bln, falling short of the IMF’s required USD 25 bln, following a USD 1.31 bln payment to the Asian Clearing Union. Despite efforts to limit spending on non-essential imports, the country’s reserves are under pressure due to reduced remittances and delays in repatriating export proceeds. On a positive note, Bangladesh secured a EUR 184 mln concessional loan from the AFD to enhance urban governance and infrastructure in 88 municipalities.