ACU central bank chiefs meet in Myanmar today
FE Report | Tuesday, 17 June 2008
Central bank chiefs of the eight-member Asian Clearing Union (ACU) will meet in Myanmar today (Tuesday) aiming to make the payment system easier and timely.
They will also take a final decision on introduction of euro along with the US dollar for settlement of payments among its member countries, officials said.
The technical committee of ACU has already recommended introduction of euro alongside the dollar for making payment settlement easier among its member countries.
"Euro will be allowed as alternative currency alongside with the US dollar from July '08 if the board of directors of the ACU accepts such recommendation," a senior official of the Bangladesh Bank (BB) told FE.
He also said the board will discuss the matter in details before taking final decision.
A two-member Bangladesh delegation, headed by the central bank Governor Dr. Salehuddin Ahmed, left Dhaka for Yangon Monday to attend the 37th board meeting.
Kazi Sayedur Rahman. deputy general manager of the Foreign Exchange Reserve and Treasury Management Department of the central bank, will take part at the meeting to assist the BB governor.
A meeting of the ACU Technical Committee will also be held in Nay Pyi Taw, administrative capital of Myanmar, Tuesday to discuss its recommendations, they added.
Besides, the existing payment system and implementation of the proposed minimum 2.0 per cent interest on the balance of ACU dollar accounts by the commercial banks concerned will be discussed during the two-day long meeting.
Earlier, the ACU Technical Committee recommended payment of minimum 2.0 per cent interest on the balance of ACU dollar accounts aiming to make settlement smooth through ensuring sufficient funds in such accounts.
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, Central Bank of Myanmar , the Royal Monetary Authority of Bhutan and Rastra Bank of Nepal .
Meanwhile, China , Vietnam and Belarus , a former member of the Commonwealth of Independent States (CIS), have expressed their interest to join the ACU for intra-regional trade promotion and cost effective transactions, they added.
Besides, the members of Indian Ocean Rim Association for Regional Co-operation (IOR-ARC), generally known as Indian Ocean Initiative, have also showed their interest to join the regional forum.
The governor of the Bangladesh Bank is now the chairman of the Tehran-based union. But the governors of the Central Bank of Myanmar and the Central Bank of Sri Lanka will take over charges of chairman and vice-chairman of the ACU respectively at the board meeting.
The ACU started its operation in November 1975 to help boost trade relations among its member countries. Bangladesh and Myanmar joined the forum 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 transaction easier, economising the use of foreign exchange reserves and minimising transfer costs.
They will also take a final decision on introduction of euro along with the US dollar for settlement of payments among its member countries, officials said.
The technical committee of ACU has already recommended introduction of euro alongside the dollar for making payment settlement easier among its member countries.
"Euro will be allowed as alternative currency alongside with the US dollar from July '08 if the board of directors of the ACU accepts such recommendation," a senior official of the Bangladesh Bank (BB) told FE.
He also said the board will discuss the matter in details before taking final decision.
A two-member Bangladesh delegation, headed by the central bank Governor Dr. Salehuddin Ahmed, left Dhaka for Yangon Monday to attend the 37th board meeting.
Kazi Sayedur Rahman. deputy general manager of the Foreign Exchange Reserve and Treasury Management Department of the central bank, will take part at the meeting to assist the BB governor.
A meeting of the ACU Technical Committee will also be held in Nay Pyi Taw, administrative capital of Myanmar, Tuesday to discuss its recommendations, they added.
Besides, the existing payment system and implementation of the proposed minimum 2.0 per cent interest on the balance of ACU dollar accounts by the commercial banks concerned will be discussed during the two-day long meeting.
Earlier, the ACU Technical Committee recommended payment of minimum 2.0 per cent interest on the balance of ACU dollar accounts aiming to make settlement smooth through ensuring sufficient funds in such accounts.
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, Central Bank of Myanmar , the Royal Monetary Authority of Bhutan and Rastra Bank of Nepal .
Meanwhile, China , Vietnam and Belarus , a former member of the Commonwealth of Independent States (CIS), have expressed their interest to join the ACU for intra-regional trade promotion and cost effective transactions, they added.
Besides, the members of Indian Ocean Rim Association for Regional Co-operation (IOR-ARC), generally known as Indian Ocean Initiative, have also showed their interest to join the regional forum.
The governor of the Bangladesh Bank is now the chairman of the Tehran-based union. But the governors of the Central Bank of Myanmar and the Central Bank of Sri Lanka will take over charges of chairman and vice-chairman of the ACU respectively at the board meeting.
The ACU started its operation in November 1975 to help boost trade relations among its member countries. Bangladesh and Myanmar joined the forum 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 transaction easier, economising the use of foreign exchange reserves and minimising transfer costs.