FAQs on the Asian Clearing Union

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....cedural instructions for channeling transactions through the ACU have been issued, by the Reserve Bank, as a separate booklet titled Memorandum ACM. 4. How are the ACU transactions to be handled by authorised dealers in India? All transactions to be cleared through the ACU are handled by authorised dealers in the same manner as other normal foreign exchange transactions. All authorised dealers in India have been permitted to handle ACU transactions. Authorised dealers may freely enter into correspondent arrangements with banks in the other countries participating in the Clearing Union. 5. What is the unit of settlement of ACU transactions? The Asian Monetary Unit is the common unit of account of ACU and is equivalent in value to one U.....

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....r and the U.S. Dollar. iv. Authorised dealers should ensure that at all times the balances maintained in the ACU dollar accounts are commensurate with the requirements of their normal exchange business and funds rendered surplus should be repatriated to India regularly. 7. Can authorized dealers open ACU Dollar Accounts in the names of all banks in all member countries including Pakistan without the prior approval of Reserve Bank of India ? Yes, authorized dealers can open ACU Dollar Accounts in the names of all banks, in all member countries, including Pakistan, without the prior approval of Reserve Bank of India. 8. What is the mechanism for settlement through the ACU? i. Reserve Bank of India undertakes to receive and pay U.S. dolla....