ACU to introduce Euro alongside dollar to ease payment settlement
FE Report | Monday, 23 June 2008
Central bank chiefs of the eight-member Asian Clearing Union (ACU) have agreed to introduce Euro alongside the US dollar for settlement of payments among the member countries from January, 2009.
The decision was taken at the 37th ACU board of directors meeting held in Nay Pyi Taw, administrative capital of Myanmar, on June 17-18 last.
'We have agreed in principle to allow Euro as an alternative currency alongside the US dollar from January, 2009 aiming to make the payment system easier,' Bangladesh Bank (BB) Governor Salehuddin Ahmed told reporters Sunday after returning from Myanmar.
The Bangladesh central bank chief led a two-member delegation at the board meeting.
He also said the Euro-US dollar conversion rate will be fixed in line with the International Monetary Fund's (IMF) special drawing right (SDR).
'We are hopeful about opening letters of credit (LCs) for foreign trade with Myanmar after introduction of Euro,' the BB governor added.
The technical committee of the ACU earlier recommended introduction of the Euro alongside the dollar.
The board meeting also agreed on incentive to be provided by the commercial banks concerned on the balance of ACU dollar accounts to ensure sufficient funds in such accounts, Mr. Ahmed added.
The ACU Technical Committee earlier 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.
Representatives of Belarus, a former member of the Commonwealth of Independent States (CIS), have attended the meeting as observers.
'Belarus is very much interested to join the ACU,' the BB governor noted.
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.
All the member central banks presented brief country reports on economic and financial activities of their respective countries to the ACU board meeting.
The governors of the Central Bank of Sri Lanka and the Royal Monetary Authority of Bhutan have been elected chairman and vice-chairman of the ACU respectively for the year 2009.
The decision was taken at the 37th ACU board of directors meeting held in Nay Pyi Taw, administrative capital of Myanmar, on June 17-18 last.
'We have agreed in principle to allow Euro as an alternative currency alongside the US dollar from January, 2009 aiming to make the payment system easier,' Bangladesh Bank (BB) Governor Salehuddin Ahmed told reporters Sunday after returning from Myanmar.
The Bangladesh central bank chief led a two-member delegation at the board meeting.
He also said the Euro-US dollar conversion rate will be fixed in line with the International Monetary Fund's (IMF) special drawing right (SDR).
'We are hopeful about opening letters of credit (LCs) for foreign trade with Myanmar after introduction of Euro,' the BB governor added.
The technical committee of the ACU earlier recommended introduction of the Euro alongside the dollar.
The board meeting also agreed on incentive to be provided by the commercial banks concerned on the balance of ACU dollar accounts to ensure sufficient funds in such accounts, Mr. Ahmed added.
The ACU Technical Committee earlier 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.
Representatives of Belarus, a former member of the Commonwealth of Independent States (CIS), have attended the meeting as observers.
'Belarus is very much interested to join the ACU,' the BB governor noted.
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.
All the member central banks presented brief country reports on economic and financial activities of their respective countries to the ACU board meeting.
The governors of the Central Bank of Sri Lanka and the Royal Monetary Authority of Bhutan have been elected chairman and vice-chairman of the ACU respectively for the year 2009.