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Asian Clearing Union (ACU)

Asian Clearing Union (ACU). Dechen Yangzom Banking Division Royal Monetary Authority 15-24 March, 2010. What is ACU?. A clearing system on multilateral basis offsets the debits and credits accumulated by each member facilitates the use of national currencies

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Asian Clearing Union (ACU)

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  1. Asian Clearing Union (ACU) DechenYangzom Banking Division Royal Monetary Authority 15-24 March, 2010

  2. What is ACU? A clearing system on multilateral basis • offsets the debits and credits accumulated by each member • facilitates the use of national currencies • eligible – Trade and trade related

  3. Establishment ACU was established at the initiative of the • United Nations Economic and Social commissions for Asia and the Pacific (ESCAP). • 1974: India, Iran, Nepal, Pakistan, Sri Lanka, Bangladesh and Myanmar • 1999: Bhutan • 2009: Maldives (Total of 9 countries)

  4. Objectives • To facilitate settlement on a multilateral basis of payments for current international transactions, • To promote the use of participants' currencies, • To promote monetary co-operation among the participants and closer relations among the banking systems, • To provide swap arrangement among the participants.

  5. ACU Mechanism Exporter in Bangladesh • Importer in Bhutan 7 1 Exporter’s Comm. Bank in Bangladesh Importer’s Comm. Bank in Bhutan Importer’s Cent. Bank in Bhutan (RMA) Exporter’s Cent. Bank in Bangladesh 2 3 6 Exporter’s Comm. Bank’s Correspondent in.. 8 ACU Secretariat 4 Importer’s Cent. Bank’s Correspondent In Exporter’s Cent. Bank’s Correspond 5

  6. ACU Mechanism ..continued • All current A/C transactions among member countries to be routed through ACU. • Transactions made on(T+1) or (T+2)‏ • Commercial Banks (CBs) utilize the ACU facility for funding or remitting surplus balances (created through the ACU mechanism) in their correspondent accounts • CBs must maintain separate US$ Nostro accounts with their correspondent banks in member countries.

  7. Benefits • easy access by participants to international reserves of other participants when foreign exchange support is needed • availability of the facility on a multilateral basis • the opportunity for further monetary co-operation among the member central banks

  8. TashiDelek!

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