FBCCI favours use of dual currency in ACU payments

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FE Report
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has favoured the use of Euro alongside the US dollar for settlement of payments among the eight-nation Asian Clearing Union (ACU) member countries.
The country's apex trade body has already submitted its recommendation to the central bank to this effect.
"We have suggested the use of Euro along with the US dollar with a view to helping the business communities in the ACU member countries," a FBCCI senior official told the FE Saturday.
He also said multi-currency system is always better than single currency for making any business payment.
The central bank of Bangladesh earlier sent a letter to the FBCCI with a request for giving its opinion about the matter through a questionnaire.
A technical committee was formed under the leadership of the Central Bank of Sri Lanka to examine the use of a second currency in ACU transactions in line with the decision of 36th board of directors meeting, held in Dhaka on May 15 last.
"We will send a concrete proposal in this connection after examining all the proposals to the Central Bank of Sri Lanka," a BB senior official told the FE.
He also said the matter will be placed before the next board of directors meeting after its approval by the technical committee.
Central banks of the ACU member countries are the Reserve Bank of India (RBI), the State Bank of Pakistan (SBP), the Central Bank of Islamic Republic of Iran, the Bangladesh Bank, the Central Bank of Sri Lanka, the Central Bank of Myanmar, the Royal Monetary Authority of Bhutan and the Rastra Bank Nepal.
The ACU started its operations in November 1975 to help boost trade relations among its member countries. Bangladesh and Burma joined the union as the sixth and the seventh members in 1976 and 1977 respectively. However, Bhutan joined the ACU December 9, 1999.
The main objective of the clearing union is to promote trade among the member countries by making the transactions easier, economising the use of foreign exchange reserves and minimising transfer costs.