Euro being thought as second currency in ACU transactions
Wednesday, 5 September 2007
FE Report
The eight-nation Asian Clearing Union (ACU) has sought opinions from trade bodies about introduction of Euro along with the existing single currency, US dollar, for settlement of regular payment among its member countries.
Each central bank of the ACU member countries will finalise their decision about introduction of Euro as parallel currency of the US dollar on the basis of the business community's opinions.
"The issue will be discussed in details at the next meeting of the technical committee, scheduled to be held in New Delhi, within the next two months," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the matter will be placed before the next board of directors meeting after its approval by the technical committee.
The 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.
The central bank of Bangladesh has already sent a letter to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade body, with a request for providing opinions about the matter in line with a questionnaire.
"We have sent the questionnaire to the country's leading export-import business entities and trade bodies concerned for their opinions," a FBCCI senior official told the FE Tuesday.
He also said the FBCCI will send its final recommendations to the central bank on the basis of the opinions of the leading companies and trade bodies.
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 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 through making the transaction easier, economising the use of foreign exchange reserves and minimising transfer costs.
The eight-nation Asian Clearing Union (ACU) has sought opinions from trade bodies about introduction of Euro along with the existing single currency, US dollar, for settlement of regular payment among its member countries.
Each central bank of the ACU member countries will finalise their decision about introduction of Euro as parallel currency of the US dollar on the basis of the business community's opinions.
"The issue will be discussed in details at the next meeting of the technical committee, scheduled to be held in New Delhi, within the next two months," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the matter will be placed before the next board of directors meeting after its approval by the technical committee.
The 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.
The central bank of Bangladesh has already sent a letter to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade body, with a request for providing opinions about the matter in line with a questionnaire.
"We have sent the questionnaire to the country's leading export-import business entities and trade bodies concerned for their opinions," a FBCCI senior official told the FE Tuesday.
He also said the FBCCI will send its final recommendations to the central bank on the basis of the opinions of the leading companies and trade bodies.
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 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 through making the transaction easier, economising the use of foreign exchange reserves and minimising transfer costs.