Question

What is the unit of settlement of ACU transactions?

A USD Correct Answer Incorrect Answer
B Asian Dollar Correct Answer Incorrect Answer
C Asian Monetary Units Correct Answer Incorrect Answer
D Asian Euro Correct Answer Incorrect Answer
E All of these Correct Answer Incorrect Answer

Solution

The Asian Monetary Units (AMUs) is the common unit of account of ACU and is denominated as ‘ACU Dollar’ and ‘ACU Euro’, which is equivalent in value to one US Dollar and one Euro respectively. All instruments of payments under ACU have to be denominated in AMUs. As the payment channel for processing ‘ACU Euro’ is under review, the operations in ‘ACU Euro’ have been temporarily suspended with effect from July 01, 2016 and accordingly, all eligible current account transactions including trade transactions in “Euro” are permitted to be settled outside the ACU mechanism until further notice.

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