ACU Full Form – What is the full form of ACU, History of ACU



What is the full form of ACU – ACU Full Form, History of ACU

ACU Full Form
ACU Full Form

What is the full form of ACU – ACU Full Form, History of ACU

  1. The ACU Full Form is Asian Currency Union. The job of this union is to allow participating banks on multilateral basis to pay for inter-regional transactions under this payment arrangement. The real objective of this Asian currency union is that it facilitates payments of transactions in member countries, thereby reducing the use of transaction costs and foreign exchange reserves. As a result, trade between countries gets boosted.

History of ACU

The decision to establish the Asian Currency Union was made in December 1970 at the Fourth Economic Conference of the Asian Economic Corporation in Kabul. After this, in the month of December 1970, five banks from India, Nepal, Iran, Pakistan and Sri Lanka signed this agreement. A draft agreement was finalized for the establishment of the ACU in which a meeting of government officials and central banks took place in Bangkok.

Benefits of ACU

  1. This bank’s union is helpful in promoting imports and exports in its member countries.
  2. With the help of this union, trade liberalization in member countries gets a big boost.
  3. By expanding trade, scale economies can be exploited.
  4. In order to lower the international competitive edge of the countries with the same distortions of trade and production, an adjustment process can be promoted.
  5. Union membership will make it easier for member countries to maintain a more balanced current account thereby creating the conditions for currency convertibility in the future.
  6. An economic basis and a monetary and financial basis can be set up for regional economic cooperation.

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Members of ACU

Over time, the number of banks in this union gradually increased and the number of these banks increased to nine at present. All these banks are Bangladesh Bank, Reserve Bank of India, Royal Monetary Authority of Bhutan, Central Bank of the Islamic Republic of Iran, Maldives Monetary Authority, Nepal Rashtra Bank, Central Bank of Myanmar, State Bank of Pakistan and Central Bank of Sri Lanka.

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