ACU:

• To make use of regional currencies instead of extra-regional currencies like pound Sterling or us dollar to settle payment of current transactions within the region.

• To promote use of participants currencies in current transactions within their respective territories and thereby effect economy in the use of convertible foreign currencies and cost of payment for current international transactions.

• To foster regional co-operation in Asia in trade and its payment.

Transaction eligible for settlement:

Currency in which instruments/Invoices are to be expressed:

Clearing Mechanism: 

• Authorised Dealers in Foreign Exchange of the participating countries shall maintain accounts with their correspondents in other member countries in their respective currencies for the purpose of settling the transactions. Funds are transferred to and from these accounts through the Central Bank of the respective countries. They settle themselves the imbalances if any by the end of the each settlement period through the clearing accounts maintained with the ACU Head Quarter. The rate of exchange of AMU and the currencies of the participating countries are published daily by Sonali bank in Bangladesh under the auspices of an Exchange Rate Committee. Each commercial bank is eligible to dispose of its surpluses in its accounts with the correspondent bank or to get such account replenished by sale to or purchase from its Central Bank as and when necessary.

• Central Bank of the participating country shall sell to and buy from the commercial bank in own country spot or forward, as the case may be, the currencies of the other participants at the rate of exchange published by the Exchange Rate Committee for currencies of Asian clearing members.

• A member selling the currency of another member will request the later to make available the specified amount to the correspondent of the purchasing bank and claim reimbursement through the clearing union. On receipt of the request the later member will make its currency available and claim reimbursement from the clearing union.

• When a participant buys the currency of another participant, the bank arranges with its correspondent in the country concerned deliver the contracted amount to the participant of the country for credit of the first participant. The second participant shall notify receipt of the amount and also request the clearing union to credit the amount of the first participant with AMUs equivalent to the amount received.

Bangladesh Bank’s Offices at Dhaka, Chittagong and Khulna shall undertake sale and purchase of the currencies of the member countries of the Asian Clearing Union. Authorised Dealers shall apply to the Bangladesh Bank for sale or purchase of the respective currencies; the relative application shall be superscribed with the words “Transactions under Asian Clearing Union.”   Deliveries of currencies of the Asian Clearing Union member countries bought from or sold to Authorised Dealers shall be made to/from the branches of the Central Banks of the respective countries at the following centres:

• On receipt of the advices, the clearing union shall effect the necessary transfer under advice to both the participants.

Each participant maintains an account in AMU with the clearing union through which the settlements of the transactions are made. The union at the end of each settlement period, notifies the participants by telex or cable of their net position and accrued interest if any, end of the amount it shall pay to or receive from the other participants.   Each debtor participant within 4 (four) working days of the receipt of the notice shall pay in US Dollar or in any other mutually acceptable currency, through telex or cable.