Asian Clearing Union (ACU). Asia payment arrangements

Also available in: Negocios Asia Affaires Asie   Negocios Asia

Course summary Asian Clearing Union (ACU):

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. The ACU was established at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

ACU members: Bangladesh, Bhutan, India, Islamic Republic of Iran, Myanmar, Nepal, Pakistan and Sri Lanka.

Since the inception of the ACU, transactions have experienced a remarkable growth. In 2007, volume of transactions (one way plus accrued interest) amounted to USD 15,830.5 million depicting 31.4 percent growth compared to the preceding year. On a monthly basis, the average transactions stood at USD 1,319.2 million compared to USD 1,004.2 million last year.

Based on the approval of the ACU Board of Directors at the 37th Meeting in Myanmar (June 2008), the accounts of the ACU are held in “Asian Monetary Units” (AMUs), comprising ACU dollar and ACU euro with effect from January 1, 2009

The Board of Directors may make arrangements with a central bank or monetary authority of a participant to provide the necessary services and facilities for the operation of the clearing facility. The Board has accepted the offer of the Central Bank of the Islamic Republic of Iran to act as agent for the Union.

Example of the course Asian Clearing Union (ACU):

Topic: Globalization and regionalization