The Asian Clearing Union (ACU) was established on December 9, 1974, at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The primary objective of ACU, at the time of its establishment, was to secure regional co-operation regarding the clearing of eligible monetary transactions among the members of the Union to provide a system for clearing payments among the member countries on a multilateral basis. Objectives To facilitate settlement of payments on a multilateral basis, To promote the use of participants' currencies, To promote monetary co-operation among the participants, To provide for currency swap arrangement among the participants. Settlement Process Period: Bimonthly Settlement Payment Deadline: T+4 Currency Swap Arrangements Eligibility: Any participant in net deficit Time of request: Before the end of a settlement period Amount: 20% of the average gross payments (ACU dollar/euro/yen accounts collectively) made by every eligible participant Rate: linear interpolation of Chicago Mercantile Exchange: CME SOFR one month and three month for US Dollar, the EURIBOR two month for Euro, two month LIBOR declared by the ICE for Japanese Yen Benefits: Easy access to international reserves of other participants Availability of the facility on a multilateral basis The opportunity for further monetary co-operation Units of Accounts AMU: Asian Monetary Units (viz. ACU dollar, ACU euro, and ACU yen), The AMUs are denominated as ACU dollar, ACU euro, and ACU yen which are equivalent in value to 1 USD, 1 Euro, and 1 JPY, respectively. Interest Payable by the net debtors at the end of each settlement period, Calculated on the daily outstanding between settlement dates, Interest rate will be the closing rate on the last Monday of the previous calendar month offered by Chicago Mercantile Exchange Secured Overnight Financing Rate (CME SOFR) term one month for US Dollar, the Euro Interbank Offered Rate (EURIBOR) one month for Euro, and the Inter-Continental Exchange (ICE) for one month Japanese Yen deposits Exchange Rate The SDR cross-rates which are quoted by the IMF on a daily basis are applied as a reference rate. Benefits of Becoming a Member Saving Forex reserves through multilateral netting and bi-monthly settlement, Addressing trade imbalances and expanding of trade and monetary cooperation between members, No need to accumulate the currencies of other members, Access to new markets and monetary integration and financial deepening, Possibility of using USD, EUR, and JPY as reserve currencies, No membership fee, Higher