What is the full form of ACU?
ACU: Asian Currency Union
The ACU was established in December 1974 when the countries in the region were facing settlement difficulties, mainly due to resource constraints. The ACU started its operations a year later in November 1975. Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.
The objectives of the ACU are:
(1) To provide a facility to settle payments, on a multilateral basis, for current international transactions among the territories of participants;
(2) To promote the use of participants’ currencies in current transactions between their respective territories and thereby effect economies in the use of the participants’ exchange reserves;
(3) To promote monetary co-operation among the participants and closer relations among the banking systems in their territories and thereby contribute to the expansion of trade and economic activity among the countries of the ESCAP region; and
(4) To provide for currency SWAP arrangement among the participants so as to make Asian Monetary Units (AMUs) available to them temporarily.