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 main
objectives of a 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
among the participating countries.
The ACU is a clearing
houses/payments arrangements operating in various regions of the world. 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.
