The Asian Clearing Union (ACU), with headquarters in Tehran, Iran, was established on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
It is the simplest form of payment arrangements whereby the participants settle
payments for intra-regional transactions among the participating central banks on a multilateral basis. The main objectives
of
a clearing union are to facilitate payments
among member countries for eligible transactions, thereby economizing on the use
of
foreign exchange reserves and transfer costs, as well as promoting trade among
the
participating countries. The ACU is a clearing houses/payments
arrangements
operating in various regions of the world.