What is ACU Dollar?
A. ACU stands for Asian Clearing Union. As the first step towards securing regional co-operation Asian Clearing Union was established with its headquarters at Tehran, Iran on 9th December 1974 at the initiative of United Nations Economic and Social Commission for Asia and Pacific (ESCAP). The participants of this union are the central banks of Iran, India, Bangladesh, Nepal, Pakistan, Sri Lanka and Myanamar. The need for expanding trade has been widely accepted as the main objective of this union. The clearing operations commenced on 1st November 1975. Value wise, there is no difference between the ACU dollar and the US dollar. The exchange rates for transactions denominated in US dollar are applicable for transactions denominated in ACU dollar also. As regards the forward rates, the forward premia which are quoted for US dollar against the rupee would also be applicable for ACU dollar. Payments for export from India will be received by debit to the ACU dollar accounts of the commercia
