Q. Consider the following statements about Asian Clearing Union (ACU):
1. Its objective is to facilitate payments among member countries that help in economizing on the use of foreign exchange reserves, reducing transfer costs and promoting trade among the participating countries.
2. India is not a member.
Which of the statements given above is/are correct?
Answer: A
Notes:
About Asian Clearing Union (ACU):
- Asian Clearing Union (ACU) was established in 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP).
- Its objective is to facilitate payments among member countries that helps in economizing on the use of foreign exchange reserves, reducing transfer costs and promoting trade among the participating countries.
- Its members include the Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka. ACU is headquartered in Tehran, Iran.
- India has recently confirmed a $400 million currency swap with Sri Lanka while deferring another $500 million due for settlement to the Asian Clearing Union (ACU).
Source: EPIC January 2022
