Asian Clearing Union
Posted by Ripon Abu Hasnat on Friday, June 13, 2014 | 0 comments
Asian
Clearing Union (ACU) is the simplest form of payment arrangements whereby the
participants settle payments for intra-regional transactions among the
participating central banks on a multilateral basis. The main objectives of a
clearing union are to facilitate payments among member countries for eligible
transactions, thereby economizing on the use of foreign exchange reserves and
transfer costs, as well as promoting trade among the participating countries.
The ACU is a clearing houses/payments arrangements operating in various regions
of the world. The
Asian Clearing Union (ACU), with headquarters in Tehran, Iran, was established
on December 9, 1974 at the initiative of the United Nations Economic and Social
Commission for Asia and the Pacific (ESCAP). The primary objective of ACU, at
the time of its establishment, was to secure regional co-operation as regards
the settlement of monetary transactions among the members of the Union and to
provide a system for clearing payments among the member countries on a
multilateral basis.
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