Important For Prelims - Economy
Foreign Trade Policy 2023, ACU, GTRI, FEMR, DGFT
Asian Clearing Union (ACU)
- Established: 1974, at the initiative of UN-ESCAP.
- Headquarters: Tehran, Iran.
- Members: Central banks/monetary authorities of several Asian countries, including India, Iran, Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka and Myanmar.
- Objective: Facilitate regional trade and payments and reduce dependence on international currencies.
- Mechanism: Members settle eligible cross-border trade transactions through a multilateral clearing arrangement.
- Importance for India: Promotes regional economic integration and can reduce transaction costs in intra-regional trade.
- India–Iran: ACU transactions have been affected by sanctions and payment restrictions, making alternative payment mechanisms important.
