Asian Clearing Union (ACU)
|Central Banks or Monetary Authorities||9|
|Mohammad Reza Farzin|
|Farhad Morsali Pavarsi|
The Asian Clearing Union (ACU) 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 regarding the clearing of eligible monetary transactions among the members of the Union to provide a system for clearing payments among the member countries on a multilateral basis.
Period: Bimonthly Settlement
Payment Deadline: T+4
Eligibility: Any participant in net deficit
Time of request: Before the end of a settlement period
Amount: 20% of the average gross payments (ACU dollar/euro/yen accounts collectively) made by every eligible participant
Rate: linear interpolation of Chicago Mercantile Exchange: CME SOFR one month and three month for US Dollar, the EURIBOR two month for Euro, two month LIBOR declared by the ICE for Japanese Yen
AMU: Asian Monetary Units (viz. ACU dollar, ACU euro, and ACU yen),
The AMUs are denominated as ACU dollar, ACU euro, and ACU yen which are equivalent in value to 1 USD, 1 Euro, and 1 JPY, respectively.
The SDR cross-rates which are quoted by the IMF on a daily basis are applied as a reference rate.
Currently (2022), the members of ACU are the central banks of Bangladesh, Bhutan, Iran (not active owing to international banking sanctions), India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar. The central banking authorities of member countries have issued detailed instructions and modalities for channeling the monetary transactions through the ACU. Membership in the ACU is open to central banks located in the geographical area of ESCAP and non-ESCAP.
|Bhutan||Royal Monetary Authority of Bhutan||1999|
|India||Reserve Bank of India||1974|
|Iran||Central Bank of the Islamic Republic of Iran||1974|
|Maldives||Maldives Monetary Authority||2009|
|Myanmar||Central Bank of Myanmar||1977|
|Nepal||Nepal Rastra Bank||1974|
|Pakistan||State Bank of Pakistan||1974|
|Sri Lanka||Central Bank of Sri Lanka||1974|
All eligible transactions between member countries are required to be cleared through the Asian Clearing Union. The monetary transactions eligible to be settled through the Asian Clearing Union include the following:
All instruments of payment denominated in AMUs (ACU dollar, ACU euro, and ACU yen), may be used to effect payment through the clearing facility.
Transactions channeled through the ACU mechanism in 2021 amounted to 29 billion USD.