The Asian Clearing Union (ACU) is a clearinghouse that facilitates payments for intra-regional transactions among participating central banks in Asia. It aims to promote trade, economize on foreign exchange reserves, and reduce transfer costs. The ACU has 9 member economies and is headquartered in Tehran, Iran. Each member appoints representatives to a Board of Directors that governs the ACU and meets at least annually. Membership is open to central banks in the Asia-Pacific region.

1. Presented to:
Farhana Rob
Shampa
Senior lecturer of
finance
Presented by:
Romana Akter
Id: 110104002
Course title: Bank
Management
Course code: FIN
4207
Section: B

2. 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 ACU is a clearing houses/payments
arrangements operating in various regions of the
world.

3. The main objectives of a clearing union are to
 facilitate payments among member countries for
eligible transactions
 economizing on the use of foreign exchange
reserves and transfer costs
 promoting trade among the participating
countries.

4. Asian Clearing Union (ACU)
Headquarters Tehran, Iran
Type Clearing union
Member Economies 9
Leaders
ACU Chairman Bhutan
Establishment 1974
Website www.asianclearingunion.org

5.  Each participant appoints one director and one alternate
director.
 The Board elects a chairman and a vice-chairman from
among its members.
 The Board meets at least once a year.
 All decisions of the Board of Directors are taken by a
majority of the votes of all Directors unless a special
majority is required by the Agreement.

6. The central banking authority of member
countries has 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.

7. Name Central Bank Year
Bangladesh Bangladesh Bank 1974
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

8. The unit of settlement of ACU transactions is a
common unit of account of ACU, and the unit
is equivalent to one USD, and the Asian
Monetary Unit may be denominated as ACU
dollar & EURO Dollars

9. The ACU was established in December 1974
when the countries in the region were facing
settlement difficulties, mainly due to resource
constraints.
The ACU started its operations a year later in
November 1975.
Over the years, the ACU has displayed a sense of
true commitment, consolidated and nurtured
throughout its operations.

10. By applying sound strategies, it achieved pre-
determined objectives
 to facilitate settlement on a multilateral basis,
 to promote the use of participants’ currencies,
 to improve monetary and banking cooperation,
and
 to expand trade and economic activity among
the countries of the ESCAP region.

11.  The results of long-term initiatives to raise the Union
achievements are evident from the following facts:
1. Rapid expansion of trade
2. Timely settlement
3. Establishment of multi-currency settlement system
4. Revision of the Agreement Establishing the ACU and
Procedure Rules
5. Quality management and information technology
6. Expansion of the ACU
Nevertheless, there is still a long way to go. The ACU
challenges are to strengthen, smoothen, and streamline
the mechanism to cope with fast pacing developments in
the international markets.

12. Hope its was not bad
and thanks to every
one.