Central bank to host ACU meet this month

KATHMANDU, MAY 3: 

Nepal Rastra Bank (NRB) will host the Asian Clearing Union (ACU)’s meeting in Pokhara this May. The ACU Technical Committee meeting is scheduled for May 15. The event will also host the 41st Board of Directors meeting on May 17. 

The central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are members of ACU. The ACU is a clearing house operating in various regions 

of the world. It allows member countries to settle payments for intra-regional transactions among the participating central banks on a multilateral basis.

“The settlement of payments for exports and imports between nations are undertaken by banks in New York which is a costly affair, so ACU undertakes the settlements among the member nations every two months and the remaining payment is settled at a bank in New York,” said spokesperson for the central bank Bhaskar Mani Gyanwali. 

The main objective of a clearing union is to facilitate payments among member countries for eligible transactions, thereby economising on the use of foreign exchange reserves and transfer costs, as well as promoting trade among the participating countries. 

Similarly, SAARCFINANCE Governors Symposium and Group Meeting has also been scheduled for May 16 during the event. The theme of 

the symposium is ‘Food Inflation in SAARC Region’. Besides, a separate round table discussion on ‘Macroprudential and Monetary Policies in SAARC Region’ will also be held.

Source: THT