Euro to be introduced in ACU payment system from Jan 1
Sunday, 21 December 2008
Siddique Islam
The central banks of the Asian Clearing Union (ACU) member countries are preparing to introduce Euro alongside the US dollar for settlement of import payments from January 1, 2009.
"We've started preparation to introduce Euro alongside the US dollar for settlement of import payments among the eight-member ACU in line with its board of directors' decision," a senior official of the Bangladesh Bank (BB) told the FE.
Central bank chiefs of the ACU member countries took such a decision aiming to make the payment system easier at its 37th board of directors meeting held in Nay Pyi Taw, administrative capital of Myanmar, on June 17-18 last.
He also said Bangladesh Bank is likely to issue a circular in this connection by the end of this week.
"The banks will be empowered to open letters of credit for foreign trade in Euro alongside the US currency among the ACU member countries from the beginning of the next calendar year," another BB official told the FE.
The BB officials, however, said that the commercial banks have to open NOSTRO accounts in Euro alongside US dollar with the correspondent foreign banks among the ACU member countries for such deals.
The Euro-US dollar conversion rate will be fixed in line with the International Monetary Fund's (IMF) special drawing right (SDR), they added.
A technical committee was earlier 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 the 36th board meeting, held in Dhaka on May 15, 2007.
The governors of the Central Bank of Myanmar and the Central Bank of Sri Lanka are now functioning as chairman and vice-chairman of the Tehran-based union respectively.
The ACU started its operations 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.
The central banks of the Asian Clearing Union (ACU) member countries are preparing to introduce Euro alongside the US dollar for settlement of import payments from January 1, 2009.
"We've started preparation to introduce Euro alongside the US dollar for settlement of import payments among the eight-member ACU in line with its board of directors' decision," a senior official of the Bangladesh Bank (BB) told the FE.
Central bank chiefs of the ACU member countries took such a decision aiming to make the payment system easier at its 37th board of directors meeting held in Nay Pyi Taw, administrative capital of Myanmar, on June 17-18 last.
He also said Bangladesh Bank is likely to issue a circular in this connection by the end of this week.
"The banks will be empowered to open letters of credit for foreign trade in Euro alongside the US currency among the ACU member countries from the beginning of the next calendar year," another BB official told the FE.
The BB officials, however, said that the commercial banks have to open NOSTRO accounts in Euro alongside US dollar with the correspondent foreign banks among the ACU member countries for such deals.
The Euro-US dollar conversion rate will be fixed in line with the International Monetary Fund's (IMF) special drawing right (SDR), they added.
A technical committee was earlier 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 the 36th board meeting, held in Dhaka on May 15, 2007.
The governors of the Central Bank of Myanmar and the Central Bank of Sri Lanka are now functioning as chairman and vice-chairman of the Tehran-based union respectively.
The ACU started its operations 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.