The Asian Clearing Union (ACU) was established in 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific. The ACU's primary objective was to facilitate regional cooperation and provide a multilateral system for clearing payments between member countries. The members are the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar. Eligible transactions include payments between residents of member countries for current international transactions, as well as export/import payments on deferred terms between ACU members. Ineligible transactions are payments between Nepal/India and Bhutan/India, as well as payments not for current international transactions unless agreed upon.

1. ASIAN CLEARING
UNION (ACU)

2. INTRODUCTION
The Asian Clearing Union (ACU), with headquarters
in Tehran, Iran, 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 as regards the settlement of
monetary transactions among the members of the Union
and to provide a system for clearing payments among the
member countries on a multilateral basis.

3. MEMBERS
The members of ACU are the central banks of
Bangladesh, Bhutan, Iran, India, Maldives,
Nepal, Pakistan, Sri Lanka, and Myanmar. The
central banking authority of member countries
has issued detailed instructions and modalities
for channeling the monetary transactions
through the ACU.

4. ELIGIBLE TRANSACTIONS
 Payments from the resident in the territory of one participant to a resident in
the territory of another participant,
 Payment for current international transactions as defined by the Articles of
Agreement of the International Monetary Fund,
 Payment permitted by the country in which the payer resides,
 Payment which are in compliance with FEMA 1999, rules, regulations, orders
or directions issued thereunder and the specific provisions of the Memorandum
ACM.
 Payment for exports and / or import transactions between ACU member
countries on deferred payment terms.

5. INELIGIBLE TRANSACTIONS
 Payment between Nepal and India; and between Bhutan and India, except
certain exceptions pertaining to imports from India by an importer resident in
Nepal and who has been permitted by the Nepal Rashtra Bank to remit payment
in foreign exchange,
 Payments which are not on account of current international transactions, as
defined by the International Monetary Fund, except to the extent mutually
agreed upon between the member countries, and
 Such other payments as may be declared, from time to time, by the Asian
Clearing Union to be ineligible for being routed through the facility provided by
the Asian Clearing Union.

6. REFERENCES
http://www.asianclearingunion.org/
http://leaprate.com/2014/06/02/iran-excludes-us-dollar-from-forex-reserves-what-is-the-
impact/
http://en.wikipedia.org/wiki/Asian_Clearing_Union

7. THANK YOU