Sri Lanka meeting admits Maldives into regional clearing group

June 18, 2009 (LBO) – the Asian Clearing Union (ACU), regional transaction settlement arrangement that tries aimed at by passing hard currency use, has admitted Maldives at a meeting held in Sri Lanka’s capital Colombo. The ACU headquartered in Iran is made up of the Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of the Islamic Republic of Iran, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan and the Central Bank of Sri Lanka.

The board of directors of the ACU, at their 38th meeting had decided to admit the Maldives Monetary Authority to group, the Central Bank of Sri Lanka said.

The ACU had cleared deals worth 42 billion US dollar in 2008, which was up 32 percent over 2007.

The ACU was set up in 1974 following the final collapse of the gold standard and the establishment of floating exchange rate in 1971-73, following excessive money printing by the US Federal Reserve.

But foreign exchange ‘shortages’ and exchange controls had appeared from the time of the second World War as European central banks printed money and suspended gold convertibility to finance the war.

After the collapse of the Bretton Woods arrangement in 1971-73 and wi