A clearing system on multilateral basis  offsets the debits and credits accumulated by each member  facilitates the use of national currencies  eligible – Trade and trade related

ACU was established at the initiative of the  United Nations Economic and Social commissions for Asia and the Pacific (ESCAP).  1974: India, Iran, Nepal, Pakistan, Sri Lanka, Bangladesh and Myanmar  1999: Bhutan  2009: Maldives (Total of 9 countries)

 To facilitate settlement on a multilateral basis of payments for current international transactions,  To promote the use of participants' currencies,  To promote monetary co-operation among the participants and closer relations among the banking systems,  To provide swap arrangement among the participants.

Exporter’s Cent. Bank in Bangladesh Importer’s Cent. Bank in Bhutan (RMA) Importer’s Comm. Bank in Bhutan Importer’s Cent. Bank’s Correspondent In ACU Secretariat Exporter’s Comm. Bank’s Correspondent in.. Exporter’s Comm. Bank in Bangladesh Exporter in Bangladesh Exporter’s Cent. Bank’s Correspond Importer in Bhutan

 All current A/C transactions among member countries to be routed through ACU.  Transactions made on(T+1) or (T+2)‏  Commercial Banks (CBs) utilize the ACU facility for funding or remitting surplus balances (created through the ACU mechanism) in their correspondent accounts  CBs must maintain separate US$ Nostro accounts with their correspondent banks in member countries.

 easy access by participants to international reserves of other participants when foreign exchange support is needed  availability of the facility on a multilateral basis  the opportunity for further monetary co-operation among the member central banks

Tashi Delek!