The need to create compensation unions was felt as early as the 1930s due to the shortage of foreign exchange, the collapse of the gold standard and the collapse of international capital markets, which forced governments to put in place, on the one hand, exchange and foreign trade controls and, on the other hand, to sign bilateral trade and payment agreements. Currently (2016), ACU members are the central banks of Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka and Myanmar. The authority of the Central Bank of the Member States has adopted detailed instructions and procedures for channelling monetary operations through the ACU. Affiliation to the ACU is open to central banks located in the geographical area of ESCAP. For more information about the agreement, staff should first consult their designated supervisor. If further information or advice is needed, staff should go to the service centre. The Asian Clearing Union (ACU), headquartered in Tehran, Iran, was established on 9 December 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). At the time of its creation, the main objective of the ACU was to ensure regional cooperation in the management of eligible financial transactions between the members of the Union, in order to set up a system of thought compensation between Member States on a multilateral basis. The Asian Clearing Union aims to achieve four fundamental objectives for its participating countries. They are: – Between February and April 2011, to pay Iran, India first turned to a complex mechanism used by the Hamburg-based European-Iranian Bank of Commerce (EIH) through the German Central Bank and the State Bank of India, as the procedure did not violate UNSC or EU sanctions. However, pressure on German Chancellor Angela Merkel of the United States has increased and this line was also closed by Germany in April 2011. India then struck a deal with Turkey`s Halkbank, 75 percent of which was owned by the Turkish government, which had refused to comply with U.S.
and European sanctions. But halkbank has also been under pressure to close this payment channel. The Central Bank of Myanmar has mandated Myanma Foreign Trade Bank, Myanma Investment and Commercial Bank, Myanma Economic Bank, Kanbawza Bank, Ayeyarwaddy Bank, Cooperative Bank and Global Treasury Bank to make ACU payments through the Clearing Facility. The Asian Clearing Union (ACU) was established at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The draft agreement establishing the ACU was finalized at a meeting of senior government and central bank officials at ESCAP in Bangkok in December 1974, following the signing of the agreement by five central banks (India, Iran, Nepal, Pakistan and Sri Lanka). . . .