Asian Clearing Union (ACU) is the simplest form of payment arrangements whereby the members settle payments for intra-regional transactions among the participation central banks on a net 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 and banking relations among the participating countries.
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). The ACU started its operations a year later in November 1975. Currently the members of ACU are the central banks of Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar.
The ACU functions under a Secretary General responsible to the board of Directors and The central Bank of Iran acts as a Agent Bank.