Asian Clearing Union (ACU) At A Glance

Asian Clearing Union (ACU) At A Glance

Asian Clearing Union (ACU)

Asian Clearing Union (ACU) At A Glance: Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis. The main objectives of the clearing union are to facilitate payments among member countries for eligible transactions, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade and banking relations among the participating countries.

Table of Contents
Table of Contents 1
Asian Clearing Union (ACU) 3
History of Clearing Unions 3
Introduction 4
ACU Organization 6
Postal address Bangladesh Bank, 6
Royal Monetary Authority of Bhutan 6
Reserve Bank of India 7
Central Bank of the Islamic Republic of Iran 8
Maldives Monetary Authority 8
Central Bank of Myanmar 9
Nepal Rastra Bank 9
State Bank of Pakistan 9
Central Bank of Sri Lanka 10
GENERAL PROVISIONS 11
ARTICLE I-ASIAN CLEARING UNION 11
ARTICLE II-PURPOSES 11
ARTICLE III-PARTICIPATION 11
CHAPTER II 12
OPERATIONS 12
ARTICLE IV-UNIT OF ACCOUNT 12
ARTICLE V-CLEARING OF INDIVIDUAL 13
PAYMENTS AND TRANSFERS 13
ARTICLE VI-SETTLEMENT OF BALANCES 14
AMONG PARTICIPANTS 14
ARTICLE VII-MAINTENANCE OF VALUE AND 15
NON-SETTLEMENT OF BALANCES 15
ARTICLE VIIA-CURRENCY SWAP ARRANGEMENT 17
CHAPTER III 17
ORGANIZATION AND ADMINISTRATION 17
ARTICLE VIII-ORGANIZATION 17
ARTICLE IX-AGENT 19
ARTICLE XII-REPORTS AND ASSESSMENTS 20
CHAPTER IV 20
MISCELLANEOUS PROVISIONS 20
ARTICLE XIII-WITHDRAWAL FROM PARTICIPATION 20
ARTICLE XIV-AMENDMENT 21
CHAPTER V 22
FINAL PROVISIONS 22
ARTICLE XVI-SIGNATURE AND CUSTODY 23
Procedure Rules 24
SWAP Facility 29
Administration Organization 29
Secretariat Office 30
Agent Bank 30
Board of Directors 30
Alternate Directors 31
Officers-in-Charge 32
Technical Committee 34
Contact Us 34
Secretariat 34

 

Asian Clearing Union (ACU) At A Glance

Asian Clearing Union (ACU)

Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis. The main objectives of the clearing union are to facilitate payments among member countries for eligible transactions, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade and banking relations among the participating countries.

History of Clearing Unions

The need for the formation of clearing unions was felt as early as in the 1930s due to foreign exchange shortages, the breakdown of the gold standard, and the collapse of the international capital markets forcing the governments to introduce controls on foreign exchange and foreign trade on the one hand and to sign bilateral trade and payments agreements on the other.

It was recognized after a while, however, that bilateral clearing arrangements had a repressive effect on trade and that they led to inefficient use of resources. In the early 1940s, J. M. Keynes proposed a kind of an international clearing union that would operate on a multilateral basis but the United States opposed the idea on the grounds that it rested on automatic credits and controlled trade.
At the end of the Second World War, scarcity of hard currencies in Europe led the Western European countries to sign numerous bilateral agreements once again. These bilateral agreements reached to payments and credits limits soon; however, these countries had the choice of establishing either current account convertibility or a multilateral payments union. They have opted for the second solution and concluded two agreements for multilateral settlements, one in 1947 and the other in 1948, by reporting their balances to the Bank for International Settlements (BIS). In mid-1950, 18 Western European countries joined in a multilateral clearing union known as the European Payments Union (EPU). In this system, at the end of each settlement period the balance (the amount which has not been cleared in the system) settled by US dollar. Success of EPU encouraged developing countries to set up similar Clearing Unions in Africa, Latin America as well as in Asia and the Pacific region.
Establishment of Asian Clearing Union (ACU)

The ACU was established at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The Decision to establish the ACU was taken at the Fourth Ministerial Conference on Asian Economic Cooperation held in December 1970 at Kabul. The Draft Agreement Establishing the ACU, was finalized at a meeting of senior officials of the governments and central banks held at ESCAP, Bangkok, in December 1974 after five central banks (India, Iran, Nepal, Pakistan, and Sri Lanka) signed the Agreement. Bangladesh and Myanmar were the sixth and seventh signatories to this Agreement. Bhutan and Maldives signed the Agreement in 1999 and 2009 respectively and the number of the ACU participants reached nine.
Clearing Union Defenition and Reasons for Existence

A clearing union can be defined as a multilateral payments arrangement that periodically offsets the debits and credits accumulated by each member against the other members in the process of trade and other transactions. Multilateral clearing or payments arrangements facilitate the use of national currencies, and thus serve to relax the foreign exchange constraints of the members.

Among the basic reasons for the formation of a clearing union, the following can be mentioned:

i) Exports and imports among members can expand relatively faster because of conservation of foreign exchange in intra-group transactions, at least until the settlement date.

ii) Trade liberalization can be promoted initially among the members.

iii) Exploitation of scale economies would be made possible by enlarged trade.

iv) An adjustment process can be promoted that would raise the international competitiveness of the members which have similar distortions in trade and production.

v) Measures and surveillance by the union can help to secure a more balanced current account which in turn contributes to the creation of conditions for the future convertibility of each of the currencies of member countries.

vi) Ground can be prepared for regional economic cooperation in general and for monetary and financial cooperation in particular.

Introduction

Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.

The objectives of the ACU are:

(1) To provide a facility to settle payments, on a multilateral basis, for current international transactions among the territories of participants;

(2) To promote the use of participants’ currencies in current transactions between their respective territories and thereby effect economies in the use of the participants’ exchange reserves;

(3) To promote monetary cooperation among the participants and closer relations among the banking systems in their territories and thereby contribute to the expansion of trade and economic activity among the countries of the ESCAP region; and

(4) To provide for currency SWAP arrangement among the participants so as to make Asian Monetary Units (AMUs) available to them temporarily.
ACU Measures and Achievements

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. 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.

The results of long-term initiatives to raise the Union achievements are evident from the following facts:

(1) Rapid expansion of trade: Since the inception of the ACU, transactions have experienced a remarkable growth. In 2007, volume of transactions (one way plus accrued interest) amounted to USD 15,830.5 million depicting 31.4 percent growth compared to the preceding year. On a monthly basis, the average transactions stood at USD 1,319.2 million compared to USD 1,004.2 million last year.

(2) Timely settlement: Under the ACU Procedure Rules, the debtor members should pay up their dues in convertible currencies within four working days of the receipt of the notice of payment from the Secretary General. There has been no default by any member so far in meeting its obligation for the settlement of its net position within the stipulated time.

(3) Establishment of multi-currency settlement system: Based on the approval of the ACU Board of Directors at the 37th Meeting in Myanmar (June 2008), the accounts of the ACU are held in “Asian Monetary Units” (AMUs), comprising ACU dollar and ACU euro with effect from January 1, 2009. Since then, the participants are authorized to settle transactions either in US dollar or Euro within the ACU mechanism.

(4) Revision of the Agreement Establishing the ACU and Procedure Rules: In tandem with developments and challenges ahead, the ACU Board of Directors amended the Agreement Establishing the ACU and Procedure Rules.

(5) Quality management and information technology: Believing in the fact that developing an online access to information would be a worldwide requirement; the ACU has developed both the quality and quantity of the system. In order to accelerate the process of presenting services and to make dispersion of information smoother, the participants were enabled to access their ACU accounts on a daily basis through the Internet.

(6) Expansion of the ACU: Based on a decision made at the 36th Board of Directors Meeting in Bangladesh (May 2006), the expansion of the Union was put at the top of its agenda.

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.
Membership Quota

Membership in the ACU does not impose a financial burden (quota) on members as all expenses associated with running the ACU Secretariat are borne by the Central Bank of Iran─ the agent bank of the Union ─ since the inception of the ACU.
ACU Organization
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.

The Board of Directors appoints a Secretary General to conduct the business of the ACU. The Secretary General acts as the representative of the Board of Directors.
The Board of Directors may make arrangements with a central bank or monetary authority of a participant to provide the necessary services and facilities for the operation of the clearing facility. The Board has accepted the offer of the Central Bank of Iran to act as an agent for the Union.

Postal address Bangladesh Bank,
P.O. Box 325,
Dhaka, Bangladesh
Business hours Sunday to Thursday, 3:00-11:00h (GMT)
Contacts Mr. Kazi Sayedur Rahman,
ACU Officer-in-Charge and General Manager, Forex Reserve and Treasury Management Department
Telephone 88-02-9530116
Fax 88-02-9530102
E-mail acu@bb.org.bd; kazi.sayedur@bb.org.bd
S.W.I.F.T. BBHOBDDH
Website www.bb.org.bd

Royal Monetary Authority of Bhutan

Postal address Royal Monetary Authority of Bhutan,
P.O. Box 154,
Thimphu, Bhutan
Business hours Monday to Friday from March 1 to October 31st, 3:00-11:00h. (GMT),
from November 1 to February 28th, 3:00-10:00h (GMT)

Contacts

Telephone

Fax

E-mail

Contacts

Mr. Jai Narayan Pradhan,
Director, Payment and Settlement System Department

975-2-339826

975-2-322847

jnpradhan@rma.org.bt

Mrs. Phuntsho Dolma,
Assistant Banking Officer, Banking Division
Telephone 975-2-323111
Fax 975-2-322847
E-mail pdolma@rma.org.bt
S.W.I.F.T. RMABBTBT
Websit www.rma.org.bt

Reserve Bank of India

Postal address Reserve Bank of India,
22nd Floor,
Shahid Bhagat Singh Marg,
Mumbai-400 001, India
Business hours Monday to Friday, 4:30-12:15h (GMT)
Contacts Mr. Shri N Senthil Kumar,
ACU Officer-in-Charge and Deputy General Manager, Department of External Investments and Operations
Telephone 91-22-22618512
Fax 91-22-22633366
E-mail senthi@rbi.org.in
S.W.I.F.T. RBISINBB
Website www.rbi.org.in

Central Bank of the Islamic Republic of Iran

Postal address Central Bank of the Islamic Republic of Iran,
P.O. Box. 15875/7177,
Tehran, Iran
Business hours Saturday to Wednesday, 4:30-12:30h (GMT)
Contacts Dr. Rasoul Sajjad,
Director, International Department
Telephone 98-21-29953591, 29953592
Fax 98-21-22257180
E-mail r.sajjad@cbi.ir
S.W.I.F.T. BMJIIRTHINT
Website www.cbi.ir

Maldives Monetary Authority
Majeedhee Building,
Boduthakurufaanu Magu,
PO Box: 20182
Malé, Republic of Maldives
Business hours Sunday to Thursday, 3:00-11:00h (GMT)
Contacts Ms. Aishath Nadhiya
ACU Officer-in-Charge and Manager, Foreign Exchange Section, Banking Payment and Settlement Division
Telephone 960-3325057
Fax 960-3327035
E-mail aishath.nadhiya@mma.gov.mv
S.W.I.F.T. MMAUMVMV
Website www.mma.gov.mv

Central Bank of Myanmar

Postal address Central Bank of Myanmar,
26(A), Settmu Road,
Yankin Township,
P.O. Box 184,
Yangon, Myanmar
Business hours Monday to Friday, 3:30-8:30h (GMT)
Contacts Ms. Than Than Swe,
ACU Officer-in-Charge and Acting Director General, Financial Supervisory Department
Telephone 95-067-418346, 95-01-543757
Fax 95-01-543743, 543677
E-mail thanthanswedd@gmail.com
S.W.I.F.T. CBMYMMMY
Website www.cbm.gov.mm

Nepal Rastra Bank

Postal address Nepal Rastra Bank,
Central Office,
P.O. Box 73
Kathmandu, Nepal
Business hours Sunday to Thursday, 4:15-12:15h (GMT)
Fridays, 4:15-7:45h (GMT)
Contacts Mr. Ramesh Sharma,
ACU Officer-in-Charge and Assistant Director, Foreign Exchange Management Department
Telephone 977-1-4441039
Fax 977-1-4414553
E-mail sramesh@nrb.org.np
S.W.I.F.T. NRBLNPKA
Website www.nrb.org.np

State Bank of Pakistan

Postal address State Bank of Pakistan,
I.I. Chundrigar Road,
P.O. Box 4456,
Karachi, Pakistan
Business hours Monday to Friday, 4:00-12:00h (GMT)
Saturdays, 4:00-8:30h (GMT)
Contacts Mr. Saleem Ullah,
ACU Officer-in-Charge and Director, Finance Department
Telephone 92-21-99212481
Fax 92-21-99212482
E-mail saleem.ullah@sbp.org.pk
S.W.I.F.T. SBPPPKKA
Website www.sbp.org.pk

Central Bank of Sri Lanka

Postal address Central Bank of Sri Lanka,
No. 30 Janadhipathi Mawatha,
Colombo 01, Sri Lanka
Business hours Monday to Friday, 2:30-10:45h (GMT)
Contacts Mr. D. Kumaratunge,
ACU Alternate Director and Director, Payments and Settlements Department
Telephone 94-11-2477042
Fax 94-11-2387009
E-mail kum@cbsl.lk
Mr. A M Gunathilaka,
ACU Officer-in-Charge and Deputy Director, Payments and Settlements Department
Telephone 94-11-2477078
Fax 94-11-2346280
E-mail amg@cbsl.lk
Mrs. K.AT.N. Senarathne,
Senior Assistant Director/Head of ACU Division, Payments and Settlements Department
Telephone 94-11-2477053
Fax 94-11-2422819
E-mail thamaran@cbsl.lk
S.W.I.F.T. CBCELKLX
Website www.cbsl.gov.lk

Asian Clearing Union (ACU) At A Glance

GENERAL PROVISIONS
ARTICLE I-ASIAN CLEARING UNION

The central banks and other monetary authorities on whose behalf the present Agreement is signed, hereinafter referred to as “participants”, agree to establish a system for clearing payments among their respective countries on a multilateral basis, hereinafter referred to as the “Asian Clearing Union”, which shall be governed by the provisions of this Agreement and by the rules, regulations and decisions agreed within its framework.
ARTICLE II-PURPOSES

The purposes of this Agreement are:

(a) To provide a facility to settle, on a multilateral basis, payments for current international transactions among the territories of participants;

(b) To promote the use of participants’ currencies in current transactions between their respective territories and thereby effect economies in the use of the participants’ exchange reserves;

(c) To promote monetary co-operation among the participants and closer relations among the banking systems in their territories and thereby contribute to the expansion of trade and economic activity among the countries of the ESCAP region; and

(d) To provide for currency swap arrangement among the participants so as to make Asian Monetary Units available to them temporarily.

ARTICLE III-PARTICIPATION

SECTION 1- Eligibility to participate

(a) Participation in the Asian Clearing Union shall be open to the central bank or monetary authority of each regional member or associate member of ESCAP.

(b) Participation in another clearing group or arrangement is not precluded by participation in the Asian Clearing Union.

SECTION 2- Original participants

Original participants shall be those central banks or monetary authorities that are eligible to participate in and which sign this Agreement not later than three months from the date this Agreement has been signed by the duly authorized representatives of five such central banks or authorities. Each shall become a participant on the date this Agreement enters into force.

SECTION 3- Other participants

A central bank or monetary authority that is eligible to participate and is not an original participant may apply to the Board of Directors to become a participant and be admitted as a participant if the Board so decides by a two-third vote of all the Directors and upon such central bank or monetary authority signing this Agreement and accepting the rules, regulations and decisions of the Board of Directors. The Chairman of the Board shall determine the date on which the payments and transfers with respect to such a participant shall be included in the clearing facility.

CHAPTER II
OPERATIONS
ARTICLE IV-UNIT OF ACCOUNT

(a) The accounts of the Asian Clearing Union shall be kept in “Asian Monetary Units” (viz. ACU dollar and ACU euro) which may be referred to in the abbreviated form as “AMUs”.

(b) The Asian Monetary Units shall, with effect from 01.01.2009 , and until such time as it is changed by the Board of Directors in terms of sub-clause (c) of the Article, be denominated as ‘ ACU dollar’ and ‘ACU euro’ which shall be equivalent in value to one US dollar and one Euro, respectively.

(c) The Board of Directors may change the denomination and/or the value of the Asian Monetary Units at any time by a unanimous vote of all the Directors.

(d) In the event of a change in the denomination and/or the value of the Asian Monetary Units by the Board of Directors, the outstanding net debtor and creditor positions as of the date of this change including accrued interest shall be settled on the basis of the denomination and the value of the Asian Monetary Units preceding such change.

ARTICLE V-CLEARING OF INDIVIDUAL
PAYMENTS AND TRANSFERS

SECTION 1- Rules for individual payments and transfers

(a) The Board of Directors, after consultation with participants, shall prescribe by appropriate rules consistent with this Agreement the procedures to effect the financial settlement of eligible payments and transfers through the clearing facility. In particular, these rules and regulations shall specify the procedures to be followed by persons, commercial banks, and central banks or monetary authorities. The Board shall prescribe the information to be supplied to the Secretary General for the operation of the clearing facility.

(b) Each participant, in so far as its monetary and exchange system permits, shall take all steps necessary to put into effect in its territories the procedures prescribed by the Board of Directors and to supply the information required by the Board for the operation of the clearing facility.

SECTION 2- Eligible payments and transfers

(a) The payments that are eligible to be made through the clearing facility are payments:

(i) from a resident in the territory of one participant to a resident in the territory of another participant;

(ii) for current international transactions as defined by the Articles of Agreement of the International
Monetary Fund;

(iii) permitted by the country in which the payer resides; and

(iv) not declared ineligible under (b) or (c) below.

(b) The Board of Directors may declare specified payments to be ineligible to be channeled through
the clearing facility and may terminate such ineligibility.

(c) A participant, at the time it signs this Agreement, may declare that payments for specified transactions
are ineligible to be made by and to residents in its territories through the clearing facility. The participant
shall consult with the Board of Directors with a view to the relaxation and eventual removal of this ineligibility
as soon as circumstances permit.

SECTION 3- Duty to complete payment

Each participant undertakes that all eligible payments made through the clearing facility to residents in its territory will be accepted and completed.

SECTION 4- Use of the clearing facility

(a) A participant may require residents to make payments through the clearing facility, but such a requirement shall not be enforced in a manner that will restrict or delay the making of payments for current international transactions or create a discriminatory currency arrangement.

(b) Except to the extent that a participant requires its residents to make payments through the clearing facility in accordance with (a) above, the use of the clearing facility shall be optional.

(c) In order to promote the use of the clearing facility, participants may adopt measures designed to provide incentives to make payments for individual transactions through the clearing facility, provided such measures shall be consistent with the participant’s undertakings under the Articles of Agreement of the International Monetary Fund. Thus, for this purpose, participants may allow the conversion of their currencies into Asian Monetary Units (ACU dollar and ACU euro) or into those of other participants in respect of payment receipts at rates which are more favorable than those for dealings outside the clearing facility.

SECTION 5- Instruments of payment

The Board of Directors shall specify in its rules and regulations the types of instrument of payment that may be used and how each is to be used to make payment through the facility. Only instruments of payment denominated in Asian Monetary Units (ACU dollar and ACU euro) may be used to make payment through the clearing facility. A participant, after consultation with the Board may prohibit the use of particular instruments of payment by its residents for making payments through the clearing facility, but shall notify the Secretary General of such prohibition who shall notify all other participants.

ARTICLE VI-SETTLEMENT OF BALANCES
AMONG PARTICIPANTS

SECTION 1- Periodical settlement

(a) Settlement shall be made of net positions and accrued interest at the end of each two monthly settlement period. Settlements shall be made in accordance with section 3 of this article.

(b) The Board of Directors may change the length of the settlement period by a decision taken by a unanimous vote of all of the Directors.

SECTION 2- Interest

(a) Interest shall be paid by net debtors and transferred to net creditors on daily balances outstanding between settlement dates. The accrued interest shall be included in the calculation of the net amounts to be paid and received at the end of each settlement period and shall be notified at the end of each settlement period along with the net position of each participant.

(b) The Board of Directors shall determine, from time to time, the rate of interest, which shall be the same for both net creditor and net debtor positions, on the basis of the return on balances held on similar availability in major financial centers.

SECTION 3- Notifications and payments

(a) The Secretary General shall notify each participant of its net position, including accrued interest, and of the amounts it shall pay to, or receive from, other participants at the end of each settlement period.

(b) Each debtor participant, within four working-days of the receipt from the Secretary General of the notice of the amounts to be paid, shall make the payments in international reserve assets specified by the Board of Directors for the purpose. Payments may also be made in the currency of the creditor subject to its specific consent.

ARTICLE VII-MAINTENANCE OF VALUE AND
NON-SETTLEMENT OF BALANCES

SECTION 1- Value of payments and transfers

The value of any instrument of payment or transfer of a currency for the purpose of the amount to be settled through the clearing facility shall be the amount in the respective Asian Monetary Unit (ACU dollar or ACU euro), as well as in the case of a transfer of currency, be equivalent in the respective Asian Monetary Unit (ACU dollar or ACU euro) determined as of the date the transfer is considered to be made under the rules prescribed by the Board of Directors. The values of payments and transfers made and received with respect to participants and the resulting positions of participants shall be recorded by the Secretary General in the respective Asian Monetary Units (ACU dollar and ACU euro).

SECTION 2- Delayed payments

If a participant fails to make any payment notified to it by the Secretary General under article VI within the time required, interest shall be payable by the participant on the amount due at such rate as may be determined by the Board of Directors.

SECTION 3- Default

(a) In the event the payment referred to in Section 2 above remains unpaid after fifteen days from the date on which it was due in terms of Article VI Section 3(b), the participant shall be deemed to have defaulted and the Secretary General shall immediately notify the Directors and all participants. Thereafter no payments with respect to residents in the territory of the defaulting participant can be made through the clearing facility until the default has been fully discharged and the participant restored to full participation in accordance with (c) below.

(b) Unless the defaulting participant, within seven days of the date of default agrees with the participants to which it is obliged to make any payments due under article VI on arrangements to make the payments, with interest, its participation in the Asian Clearing Union shall be suspended.

(c) After the default has been fully discharged, the Board of Directors may restore the defaulting participant to full participation in the Asian Clearing Union subject to any special terms and conditions that the Board may deem appropriate, or may require the defaulting participant to withdraw from participation. If the defaulting participant does not agree to continue participation on the terms and conditions specified by the Board within thirty days of the decision of the Board on this matter, it shall be deemed to have withdrawn. The special terms and conditions may be revoked at any time by the Board.

(d) In addition, the Board of Directors shall consider, in consultation with participants, other means by which the amount of the default may be recovered, and participants shall take such further measures as the Board deems appropriate in order to recover the amount of the default in the shortest possible time.

ARTICLE VIIA-CURRENCY SWAP ARRANGEMENT

The Board of Directors may provide for a currency swap arrangement among the participants and specify in the rules the eligibility criteria, the terms including the rate of interest and the period for which the facility should be extended, the manner in which the participants should contribute and such other relevant conditions and procedures as are considered necessary.

CHAPTER III

ORGANIZATION AND ADMINISTRATION

ARTICLE VIII-ORGANIZATION

SECTION 1- Joint action

Representatives of the participants shall meet from time to time for the purpose of giving effect to those provisions of this Agreement which involve joint action and, generally, with a view to facilitating the operation and furthering the objectives of this Agreement. Whenever reference is made in this Agreement to the participants acting jointly, they are designated as the Board of Directors.

SECTION 2- The Board of Directors

(a) Each participant shall appoint one Director and one Alternate Director to represent it on the Board of Directors. Each Director and Alternate Director shall be appointed for a term of two years, may be reappointed, and may be replaced at any time during the term of his appointment. Each Director shall have one vote. An Alternate Director may attend the meetings but may vote only when his principal is not present or when his principal is acting as the Chairman. The Board shall elect a Chairman from among its members to serve for a period of one year, and a Vice-Chairman to serve in the absence or inability of the Chairman during the same period.

(b) The Board of Directors shall meet at least once in a calendar year. In addition, meetings of the Board shall be called by the Chairman when requested by two Directors or when the Chairman considers a meeting necessary.

(c) A quorum for any meeting of the Board of Directors shall be the Chairman or Vice-Chairman and two-thirds of the Directors.

(d) All decisions of the Board of Directors shall be taken by a majority of the votes of all of the Directors unless a special majority is required by this Agreement. The votes of “all of the Directors” mean the votes of all the Directors and not merely of those present and voting. When both a Director and his Alternate are not present at a meeting of the Board, the Director, in accordance with rules established by the Board, may authorize another Director to present his views and to cast his vote. The Chairman shall have no vote, except in the case of an equal division when he shall cast the deciding vote.

(e) The Board of Directors may establish a procedure whereby the Chairman may obtain the votes of the Directors on a specific question without calling a meeting of the Board.

(f) The Board of Directors may adopt such rules and regulations as are necessary for the organization and operation of the Asian Clearing Union.

(g) The remuneration and expenses of a Director and Alternate Director shall be borne by the participant appointing them.

SECTION 3-Secretary General and staff

(a) The Board of Directors, by a two-thirds majority of all of the Directors, shall select and appoint the Secretary General, who shall not be a Director, for a term of three years. The Board shall establish the remuneration and other terms of the contract of service of the Secretary General. The Secretary General may be reappointed and shall cease to hold office when the Board so decides by a two-thirds vote of all of the Directors.

(b) The Secretary General, under the direction of the Board of Directors shall conduct the ordinary business of the Asian Clearing Union. He shall be the head of the staff and, subject to the general rules of the Board, organize, appoint and dismiss members of the staff. He shall exercise such other powers as are assigned to him by the Board.
(c) The Secretary General shall prepare and submit to the Board the documents necessary for its work particularly the financial statements, the proposed annual budget and the draft annual report.

(d) The Secretary General shall act as the representative of the Board of Directors within the limits prescribed by the Board.

(e) The Secretary General and the staff members, in the discharge of their official functions, shall owe their duty entirely to the Board of Directors and to no other authority. Each participant in the Asian Clearing Union shall respect the international charter of this duty and shall refrain from all attempts to influence any of the staff in the discharge of his functions.

ARTICLE IX-AGENT

The Board of Directors may make arrangements with a central bank or monetary authority of a participant or with the Asian Reserve Bank when it is established to provide the necessary services and facilities for the operation of the clearing facility. The agreement establishing these arrangements with an Agent must be approved by a vote of two-thirds of all of the Directors.

ARTICLE X-RELATIONS WITH OTHER
ORGANIZATIONS AND CLEARING
ARRANGEMENTS

The Board of Directors may make arrangements to co-operate with other general, regional or sub-regional international organizations or other clearing arrangements among countries within or outside the ESCAP region. Any such arrangement shall not apply to a participant which does not consent.
ARTICLE XI-INTERPRETATION

(a) Any question of interpretation of this Agreement or of any rules, regulations or decisions of the Board of Directors arising between the Secretary General and a participant or between participants shall be decided by the Board whose decision shall be final.

(b) Should any dispute, out of or in connection with the Agreement Establishing the Asian Clearing Union and Procedure Rules, arise between the participants or between the Participants and the Board, and if efforts to settle the controversy by negotiating fail, such dispute shall be submitted to arbitration by a tribunal of three arbitrators, the first and second appointed by the parties to the dispute, and the third designated by the first two arbitrators. If they fail to reach agreement, the third arbitrator shall be appointed by the Executive Secretary of ESCAP. The third arbitrator shall be empowered to decide all matters of procedure whenever the other two arbitrators disagree with respect to such a question. The place of arbitration shall be decided by the parties to the dispute. The language of arbitration shall be English. Every effort shall be made to settle the controversy within a period of six months after service of a written request to the arbitration.

ARTICLE XII-REPORTS AND ASSESSMENTS

SECTION 1- Reports

The Board of Directors shall publish an annual report on its activities and the operations of the Asian Clearing Union. The report shall contain an audited statement of accounts and of the clearing operations. The Board may publish such other reports as it deems desirable.

SECTION 2- Operating expenses

(a) The Board of Directors shall approve the annual budget and determine the formula under which expenses shall be apportioned among participants, on the basis of the actual use made of the Asian Clearing Union and of the services rendered to them.
(b) The Board shall specify the currencies or other means in which the assessments shall be paid by members as well as the schedule of payments for each fiscal year.

(c) The Board of Directors may request the Agent to make an advance to the Asian Clearing Union on behalf of the participants when such action becomes necessary to meet expenses, but the Board shall promptly make an assessment to meet the amount borrowed.

(d) All the decisions taken by the Board of Directors in accordance with this section shall require the affirmative vote of two-thirds of all of the Directors.

CHAPTER IV

MISCELLANEOUS PROVISIONS

ARTICLE XIII-WITHDRAWAL FROM PARTICIPATION

SECTION 1- Voluntary withdrawal

Any participant may withdraw from this Agreement at any time by transmitting a notice in writing to the Secretary General. Withdrawal shall become effective three business days from the date such written notice is received by the Secretary General unless a later date is indicated by the participant in the notice. The Secretary General shall notify all other participants as promptly as possible.

SECTION 2- Compulsory withdrawal

If a participant fails to fulfill any of its obligations under this Agreement, and if, after consultation between the Board of Directors and the participant concerned, the participant fails to correct the situation, the Board may require such participant to withdraw from participation. The participant shall be deemed to have withdrawn on the date of the decision of the Board or such later date as the Board may specify.

SECTION 3- Settlement of accounts

(a) A participant shall remain liable for and shall meet all its obligations to other participants arising from its participation under the Agreement until the final settlement of accounts with it has taken place.

(b) Only instruments of payments for the settlement of transactions involving residents in the territory of the withdrawing participant issued on or before the date of its withdrawal shall be settled thereafter through the clearing facility. Settlements shall normally be made at the regular settlement dates until all outstanding instruments of payments have been cleared. The Board of Directors shall determine any further procedures needed to effect the final settlement of accounts with the withdrawing participant.

ARTICLE XIV-AMENDMENT

(a) This Agreement may be amended by a decision of the Board of Directors taken by a vote of two-thirds of all the Directors.

(b) Notwithstanding the provisions of the preceding paragraph, the affirmative vote of each Director on the Board shall be required to approve an amendment to modify the provisions of:

(i) Article III on participation;

(ii) Article IV(c) on the modification of the denomination and/or the value of the Asian Monetary Units;

(iii) Article V, Section 2(b) on specified ineligible payments;

(iv) Article VI, Section 1(b) on the change of the settlement period;

(v) Article VII, Section 1 on the value of payments and transfers;

(vi) Article XII, Section 2(a) on the formula under which expenses shall be apportioned among participants;

(vii) Article XIII, Section 1 on the right of a member to withdraw voluntarily from this Agreement at any time; and

(viii) Article XIV on the amendment of this agreement.
The absence or abstention of a Director shall be considered to be a negative vote.

(c) Any proposal to amend this Agreement shall be communicated to the Chairman of the Board of Directors who shall place the proposal before the Board for discussion. When an amendment has been adopted by the Board, the Chairman shall so certify in an official notice addressed to all participants and to the Executive Secretary of ESCAP. Amendments shall enter into force one month after the date of dispatch of the official communication unless the Board specifies a different date.
ARTICLE XV-SUSPENSION AND LIQUIDATION

(a) The Board of Directors may suspend operations by a decision of the Board taken by a vote of two-thirds of the Directors. All participants shall be notified immediately and no instrument of payment issued after the date of notice shall be settled through the clearing facility.

(b) After a decision under sub-section (a), if the Board of Directors does not decide to resume operations within six months, all operations and other activities shall be suspended, except those necessary for the orderly liquidation and the final settlement of accounts among participants as determined by the Board.

CHAPTER V

FINAL PROVISIONS

ARTICLE XVI-SIGNATURE AND CUSTODY

(a) The Executive Secretary of ESCAP shall be the depository of this Agreement and shall send certified copies of this Agreement and any amendments to it, to all regional members and associate members of ESCAP. Any amendments to this Agreement, as certified by the Chairman of the Board of Directors under the provisions of Article XIV(c), shall be appended to its text.

(b) This Agreement shall be open for acceptance by signature by duly authorized representatives of central banks or monetary authorities of regional members or associate members of ESCAP at the United Nations Economic and Social Commission for Asia and the Pacific. Each Central Bank or monetary authority on whose behalf this Agreement is signed shall deposit with the Executive Secretary, before signature, an instrument setting forth that it has full legal authority to accept this Agreement and to carry out all its obligations under it.

ARTICLE XVII-ENTRY INTO FORCE

This Agreement shall enter into force when it has been signed and the instruments provided in article XVI(b) have been deposited by duly authorized representatives of at least five central banks or monetary authorities of regional members or associate members of ESCAP, but not before the date determined by article III, section 2.

ARTICLE XVIII-COMMENCEMENT
OF OPERATIONS

(a) As soon as this Agreement enters into force, each participant shall appoint a Director and Alternate Director, and the Executive Secretary of ESCAP shall call the inaugural meeting of the Board of Directors.

(b) At its inaugural meeting, the Board shall:

(i) elect the Chairman and Vice-Chairman; and

(ii) make arrangements to proceed with the preparatory work necessary to commence operations of
the clearing facility.

(c) The Chairman of the Board shall notify the participants of the date of the commencement of the operation of the clearing facility.

ARTICLE XIX-NOTIFICATION

The Executive Secretary of ESCAP shall notify signatories and all regional members and associate members of ESCAP of:

(i) all signatures to this Agreement, and

(ii) the date on which this Agreement enters into force.

Procedure Rules

1. These rules have been adopted by the Board of Directors of the Asian Clearing Union in terms of Article VIII Section 2( f ) of the Agreement Establishing the Asian Clearing Union and shall be called the Asian Clearing Union Procedure Rules.

2. These rules shall come into force on such date as may be notified by the Board of Directors of the Asian Clearing Union.

3. DEFINITIONS: In these rules, unless there is anything repugnant in the subject or context:

(a) “Agent” means the participant central bank or monetary authority with whom the Board has arranged to provide the necessary services and facilities for the operation of the clearing facility;

(b) “Agreement” means the Agreement Establishing the Asian Clearing Union;

(c) “Asian Monetary Units” (AMUs) mean the units of accounts of the Clearing Union referred to in Article IV of the Agreement;

(d) “Board” means the Board of Directors of the Asian Clearing Union referred to in Article VIII Section 1 of the Agreement;

(e) “Clearing Union” means the Asian Clearing Union;

(f) “Secretary General” includes the officer who is designated by the Agent to perform the functions of the Secretary General for the time being;

(g) “Participant” means any central bank or monetary authority which is a signatory to the Agreement; and

(h) “Currency Swap” arrangement means an arrangement among the participants under which a participant becomes eligible to draw Asian Monetary Units from other participants in specified proportion and in specified circumstances for settling imbalances in clearing.

4. INELIGIBLE PAYMENTS: The following payments shall not be eligible to be made through the clearing facility:

(a) Payments between Nepal and India,except the payments related to bi-monthly settlements;

(b) Payments not related to import and export of goods and services, except to the extent mutually agreed between two or more participants.

Participants have agreed that payments arising on account of import/export transactions on deferred payment terms will not be considered as ineligible payments.

5. ELIGIBLE INSTRUMENTS OF PAYMENT AND THE CURRENCY IN WHICH THEY ARE TO BE DENOMINATED: All instruments of payment denominated in AMUs (ACU dollar and ACU euro), may be used to effect payment through the clearing facility. Settlement of such instruments will be made by the commercial banks through operations of the accounts referred to in Rule 6.

6. CLEARING OPERATIONS:

(a) The participants will permit the banks in their respective countries to maintain ACU dollar and ACU euro accounts with their correspondent banks in the other participating countries. All payments other than ineligible payments will be settled by the banks concerned through these accounts. The operations on these accounts shall be governed by the prevailing Exchange Control Regulations and such other directions, rules, regulations or guidelines as the participants may issue or specify from time to time.

(b) When a commercial bank desires to fund its ACU dollar or ACU euro account with its correspondent bank in another participating country, it may purchase the required amount of ACU dollar or ACU euro either from a local commercial bank having a surplus in that participating country or from its central bank. In the latter case, it will surrender equivalent amount of US dollars or euros or, at the option of the Central Bank, the equivalent in the local currency to its own Central Bank for remittance through the ACU mechanism. The participant receiving the amount will advise the participant in the country concerned to make available the amount in US dollars or euros to the concerned bank in that country. After making the payment, the second participant will advise the Secretary General of the ACU to credit its account by debit to the first participant’s account.

(c) When a commercial bank desires to repatriate funds from its ACU dollar or ACU euro account with its correspondent bank in another participating country, it may sell the desired amount of ACU dollar or ACU euro either to a local commercial bank which desires to fund its ACU dollar or ACU euro account in that participating country, or to its central bank. In the latter case, it will request that bank to effect the remittance through the ACU mechanism. The correspondent bank will surrender equivalent amount of US dollars or euros to its own Central Bank for remittance. The participant receiving the amount will advise the participant in the country concerned to make available the equivalent amount to the concerned bank in that country. The Central Bank may, at its option, make the payment in US dollar or euro or in local currency. After making the payment the second participant will advise the Secretary General of the ACU to credit its account by debit to the first participant’s account.

(d) On receipt of the advices referred to in sub-rules (b) and (c) above, the Clearing Union shall effect the necessary transfers under advice to both the participants.

7. Exchange Rate: The SDR cross-rates which are quoted by the International Monetary Fund on a daily basis shall be applied as a reference rate. In the event that the International Monetary Fund does not quote the rates, the last available rate will apply until such rates become available. However, the Board may decide upon a substitute rate if necessary.

8. CURRENCY SWAP ARRANGEMENT: A participant desirous of availing of the swap facility as defined in Rule 3 (h) should request the Secretary General in such format as he prescribes. The nature and scope of swap arrangement will be as described hereunder:

(a) “Eligibility”. Subject to sub-rule (d) of this Rule, any participant in net deficit (ACU dollar and ACU euro accounts collectively) at the end of a settlement period shall be eligible to avail of the facility. Participants whose countries have special payment arrangements between themselves will not be eligible to avail of this facility from each other.

(b) “Entitlement”. At the end of each calendar year, the Secretary General shall advise each participant by swift or telex or cable or Message Management Module (MMM) or Tested Fax of its entitlement in ACU dollar using the exchange rate referred to in Rule 7. Every eligible participant shall be entitled to the facility from every other participant up to 20% of the average gross payments (ACU dollar and ACU euro accounts collectively) made by it through the ACU mechanism to other participants during the three previous calendar years. A participant shall not, however, draw more than its net deficit (ACU dollar and ACU euro accounts collectively) at the end of a settlement period. The drawal by each participant from each other participant shall be in the same proportion as its net deficit (ACU dollar and ACU euro accounts collectively) bears to its maximum entitlement. The drawal may be effected in a currency (US dollar or euro) decided by mutual agreement.

(c) “Rate of Interest”. The rate of interest chargeable on each drawal would be equal to US dollar or euro LIMEAN derived from the respective two months LIBOR declared by the British Bankers’ Association, applicable for the concerned value date. If the rate is not available from British Bankers’ Association, the Secretary General shall ascertain it from any other London clearing bank at his discretion and if it is not available from any such bank, the rate of British Bankers’ Association applicable for the immediately preceding value date will apply.

(d) “Other Conditions”. A participant may draw under the swap arrangement for a period of 2 months at a time. Such a participant shall not be entitled to draw under the arrangement at the time of the next following settlement.

9. ACCOUNTS KEPT BY THE CLEARING UNION: The Clearing Union shall maintain two accounts (ACU dollar and ACU euro accounts) for each participant to which the payments advised by the participants will be debited or credited. Interest will be payable by the participants on the net debit balances and receivable on the net credit balances, calculated at the interest rate referred to in Rule 10, on the daily balances outstanding.

10. INTEREST:

(a) Interest on the net debit and net credit balance will be calculated by the Clearing Union on the daily outstandings by the product method, taking a year as comprising 360 days and shall be debited or credited to the participants’ accounts at the end of each settlement period. The rate of interest applicable for a settlement period will be the closing rate on the first working day of the last week of the previous calendar month offered by the Bank for International Settlements for one month US dollar and euro deposits. In the event that the Bank for International Settlements does not quote rates for such deposits, the last available rate will apply until such rates become available. However, the Board may decide upon a substitute rate if necessary.

(b) If interest rate of any currency turns to be negative, it should be treated as zero.

(c) In the case of delayed payments referred to in Article VII section 2 of the Agreement and default referred to in section 3 of the same Article, interest for the period of delay or default shall be calculated by the Clearing Union at:

(i) one percent per annum over the rate for the relevant settlement period or periods under sub-rule (a), or;

(ii) one percent per annum over the rate applicable on the day of default under sub-rule (a), whichever
is higher.

11. NOTIFICATION OF NET POSITION AT THE END OF SETTLEMENT PERIOD:

At the end of each settlement period, the Secretary General shall notify each participant by swift or telex or cable or Message Management Module (MMM) or Tested Fax of its net position and accrued interest, and of the amounts it shall pay or receive from other participants for ACU dollar and ACU euro accounts separately.

12. SETTLEMENT OF BALANCES :

(a) Each debtor participant, within four working days of the receipt from the Secretary General of the notice of the amounts to be paid, shall make the payment in US dollar or euro or in any other mutually acceptable currency, under swift or telex or cable or Message Management Module (MMM) or Tested Fax intimation to the Secretary General.
Explanation: While computing the due date for payments, the debtor member should exclude holidays in their own country and holidays in the country where nostro accounts (for the settlement currency) are maintained by them.

(b) If settlement is desired to be effected in a currency other than US dollar or euro, the participants shall, by mutual agreement, decide on the exchange rate to be made applicable for such settlement.

(c) The minimum amount of USD 100.00 or Euro 100.00 shall be settled in each settlement period. Any amount less than USD 100.00 or Euro 100.00 will be transferred to the next settlement period/s till it reaches the minimum amount for settlement to be made.

13. OBLIGATION TO ACCEPT NET POSITION ADVISED BY THE SECRETARY GENERAL:

The net position at the end of the settlement period, as notified by the Secretary General shall be accepted by every participant as correct and settlement shall be made accordingly. The participant shall, however, have the right to bring any discrepancy detected in such position to the notice of the Secretary General as soon as possible thereafter for eventual rectification and further settlement if necessary. Such rectification shall be made at the same rate of exchange at which the original settlement was made.

14. DEFAULT: In the event that a participant fails to make any payment notified to it by the Secretary General under Rule 11 within the time specified, the provisions of Article VII section 3 of the Agreement shall apply.

15. ACCOUNTS KEPT BY COMMERCIAL BANKS: The member central banks shall issue circulars to the commercial banks to consider payment of interest, at their discretion, on ACU dollar and ACU euro accounts maintained by the commercial banks of other ACU member countries as per mutually agreed terms and conditions.

16. PUBLICATIONS: The Secretary General shall use US dollar as a base currency for the ACU financial reporting and publications. The ACU euro accounts are converted to US dollars using the exchange rate referred to in Rule 7.

17. PRESERVATION PERIOD OF RECORDS AT THE ACU SECRETARIAT:

(a) Permanent:

(i) ACU Agreement and Procedure Rules

(ii) Summary of Proceedings of ACU Board of Directors Meetings and Technical Committee Meetings

(iii) ACU Publications-Annual Reports

(iv) Correspondence

(b) Ten Years:

Annual ACU Board of Directors Meeting File

(c) Three Years:

(i) Vouchers, Statements, UNIONs and NPTRs

(ii) News Letters

(iii) Exchange and Interest Rates

(iv) Other Miscellaneous Items

Exception: In the event there is dispute pertaining to any transactions, preservation period of three years related to vouchers, statements, UNIONs, NPTRs, exchange and interest rates shall not be applicable till the dispute is resolved.

18. AMENDMENT: Unless otherwise provided in the Agreement, these rules may be amended by a decision of the Board taken by a majority of the votes of all of the Directors.

19. INVITATION OF AN OBSERVER TO THE ACU BOARD OF DIRECTORS MEETINGS:

(a) The request for participating as an boserver should be recieved at least two months in advance of the Board of Directors Meeting.

(b) The Secretary General will communicate the request to all the Directors in the form of a letter.

(c) If no response is received from the Director within one month from the date of letter, it will be presumed that he/she has no objection to the proposal.

(d) The proposal has to be approved by all the Directors.

SWAP Facility

Any participant in net deficit (ACU dollar and ACU euro accounts collectively) at the end of a settlement period is eligible to avail of the SWAP facility.

Every eligible participant is entitled to the facility from every other participant up to 20 percent of the average gross payments (ACU dollar and ACU euro accounts collectively) made by it through the Asian Clearing Union mechanism to other participants during the three previous calendar years.
The rate of interest chargeable on each drawal is equal to US dollar or Euro LIMEAN derived from the respective two months LIBOR declared by the British Bankers’ Association (BBA).

The potential benefits of this facility are:

(1) Easy access by participants to international reserves of other participants when foreign exchange support is needed,

(2) Availability of the facility on a multilateral basis, and

(3) Opportunity for further monetary cooperation among the member central banks.

Administration Organization

Mr. Fazle Kabir
Chairman, Board of Directors
Governor, Bangladesh Bank

Mrs. Lida Borhan-Azad
Secretary General

Secretariat Office
Address: 47, 7th Negarestan Alley, Pasdaran Avenue
P. O. Box 15875/7177 Tehran, Iran
Tel: +98 21 22842076, +98 21 22854509
Fax: +98 21 22847677
Swift: BMJIIRTHACU
E-mail: acusecret@cbi.ir
Website: www.asianclearingunion.org

Agent Bank
Central Bank of I.R.Iran

Board of Directors

Fazle Kabir
Governor
Bangladesh Bank Dasho Penjore
Governor
Royal Monetary Authority of Bhutan Raghuram Rajan
Governor
Reserve Bank of India

Valiollah Seif
Governor
Central Bank of Islamic Republic of Iran Azeema Adam
Governor
Maldives Monetary Authority

Kyaw Kyaw Maung
Governor
Central Bank of Myanmar

Chiranjibi Nepal
Governor
Nepal Rastra Bank

Ashraf Mahmood Wathra
Governor
State Bank of Pakistan

Arjuna Mahendran
Governor
Central Bank of Sri Lanka

Alternate Directors

S. K. Sur Chowdhury
Deputy Governor
Bangladesh Bank Eden Dema
Deputy Governor
Royal Monetary Authority of Bhutan Shri S. K. Bal
Chief General Manager
Reserve Bank of India

Gholamali Kamyab
Vice Governor
Central Bank of Islamic Republic of Iran

Mariyam Hussain Didi
Assistant Gevernor
Banking Operations
Maldives Monetary Authority
Set Aung
Deputy Governor
Central Bank of Myanmar

Bhisma Raj Dhungana
Acting Executive Director
FX Management Department
Nepal Rastra Bank

Saeed Ahmad
Deputy Governor
Financial Markets
Islamic Banking & Special Initiatives
State Bank of Pakistan

D. Kumaratunge
Acting Director
Peyments and Settlements Department
Central Bank of Sri Lanka

Officers-in-Charge

Kazi Sayedur Rahman
General Manager
Foreign Exchange Reserve & Treasury
Management Department
Bangladesh Bank

Jai Narayan Pradhan
Director
Payment & Settlement Systems Department
Royal Monetary Authority of Bhutan

Shri N Senthil Kumar
Deputy General Manager
Department of External Investments & Operations
Reserve Bank of India

Rasoul Sajjad
Director
International Department
Central Bank of Islamic Republic of Iran

Aishath Nadhiya
Manager
Foreign Exchange Section
Banking Payment & Settlement Division
Maldives Monetary Authority

Than Than Swe
Acting Director General
Financial Supervisory Department
Central Bank of Myanmar

Ramesh Sharma
Assistant Director
Foreign Exchange Management Department
Nepal Rastra Bank

Saleem Ullah
Director
Finance Department
State Bank of Pakistan
A M Gunathilake
Deputy Director
Payments & Settlements Department
Central Bank of Sri Lanka

Technical Committee

The ACU Board of Directors has established a technical committee to provide independent advice, assistance, and recommendations to the Board aiming at improving and well-functioning of the ACU mechanism. The committee is composed of senior officials, and experts of the member central banks which meet on an ad-hoc basis. The committee’s proposals should be presented to the Board of Directors in writing for their review and approval.

Contact Us

Secretariat

Address: 47, 7th Negarestan Alley, Pasdaran Avenue
P. O. Box 15875/7177
Tehran, Iran
Tel: +98 21 22842076
+98 21 22854509
Fax: +98 21 22847677
E-mail: acusecret@cbi.ir
Website: www.asianclearingunion.org

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