The full form of ACU is the Asian Currency Union. It was established on December 9, 1974. Its headquarters in Tehran, Iran.
it’s a payment arrangement that permits participants to settle payments for Intra-Regional Transactions among the participating banks on a net multilateral basis. Currently (2016), the members of ACU are the central banks of Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar.
The most objective of this clearing union is to facilitate payments for eligible transactions among member countries so as to economize on the utilization of exchange reserves and transfer costs and promote the trade and baking relations among the participating countries.
The Full Form of ACU is: Asian Currency Union
Members of ACU:
- Reserve Bank of India
- Royal Monetary Authority of Bhutan
- Maldives Monetary Authority
- Central Bank of Myanmar
- Bangladesh Bank
- Central Bank of the Islamic Republic of Iran
- Nepal Rastra Bank
- Central Bank of Sri Lanka
- State Bank of PakistHistory
History of ACU:
The United Nations Economics and Social Commission for Asia and the Pacific (ESCAP) took initiative for the establishment of ACU. The decision to establish the ACU was made at the 4th Ministerial Conference on Asian Economic Cooperation held in Kabul in December 1970.
After five banks they are India, Nepal, Iran, Pakistan, and Sri Lanka who signed the agreement, a draft agreement was finalized to establish ACU at a meeting of senior government officials and central banks held in Bangkok.
Thereafter some other countries like Bangladesh, Myanmar, Bhutan, and the Maldives signed the Agreement and thus the number of ACU participants reached nine.
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