Question
Export/import to which of these countries cannot
generally be settled through Asian Clearing Union mechanism?Solution
The Asian Clearing Union (ACU) was established with its head-quarters at Tehran, Iran, on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for promoting regional co-operation. The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently the members of the ACU. The following payments are not eligible to be settled through ACU:- ·        Payments between Nepal and India and Bhutan and India, ·        Payments that are not on account of export / import transactions between ACU members countries ·        All eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism until further notice.
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