The approved method of payment both in respect of exports and imports to/from the members
of the Asia Clearing Union is Asian Currency Unit. This annexure provides the regulations relating to dealing with Asian Clearing Union by the authorized dealers.
The Asian Clearing Union (ACU) is an effort towards securing regional co-operation amongst the members of the United Nations, Economic and Social Commission for Asia and Pacific (ESCAP) and thereby contributing to the expansion of trade and economic activity among the countries of the region. It is a system for clearing payments among the participant countries on a multilateral basis. At present the countries participating in the ACU are Bangladesh, India, Iran, Myanmar, Nepal, Pakistan and Sri Lanka. The clearing operations commenced on 1st November 1975.
ACU has been established with the following objectives:
1 To facilitate payments for currency international transactions with ESCAP region on a multilateral basis;
2 To reduce the use of extra-regional currencies to settle such transactions by promoting the use of the participant’s currencies.
3 To effect thereby economies in the use of foreign exchange and a reduction in the cost of making payments for such transactions.
4 To contribute to the expansion of trade and promotion of monetary co-operation among the countries of the area.
All the transactions among the participating countries barring the following are eligible for routing through the ACU :
1 Payment between Nepal and India;
2 Payments that are not on account of current international transactions as defined by the Articles of Agreement of the International Monetary Fund, except to the extent mutually agreed upon between two or more participants;
3 Such other payments as may be declared by the Asia Clearing Union to be ineligible for being channelised through the clearing facility.
For transactions between the participating countries, the instruments of payment should be denominated in Asia Clearing Union Dollar (ACU Dollar). An ACU dollar is equivalent in value to the US dollar.