All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
AISAN
CLEARING UNION
Please refer
to F.E. Circulars No.25 dated the 27th October,
1975 and No.47 dated the 22nd September, 1980
on the above subject.
2. The following
changes have been made in the Agreement establishing the
Asian Clearing Union and the (Procedure) Rules:-
-
The value
of Asian Monetary Unit (AMU) which was hitherto equivalent
to International Monetary Fund’s (IMF) Special
Drawing Right (SDR) will effective from 1st
January, 1996 be equal to U.S. Dollar and it will be
denominated as "ACU Dollar".
-
The banks
of the member countries presently maintain Nostro accounts
in the currency of the country where the account is
maintained. Under the new mechanism these accounts will
be maintained in "ACU Dollar".
-
When
an Authorized Dealer needs to fund its ACU Dollar Nostro
account with its correspondent bank in another participating
country, it will surrender equivalent amount of U.S.
Dollar to State Bank if Pakistan for remittance through
ACU mechanism. State Bank of Pakistan will advise the
Central Bank in the country concerned to make available
the required U.S. Dollar amount to the concerned bank
in that country. State Bank of Pakistan will also advise
the General Manager – ACU to credit the account
of the Central Bank of that country by debit to its
(SBP’s) account. The Authorized Dealers also have
the option to get their rupee accounts with State Bank
of Pakistan debited with equivalent of U.S. Dollar amount
desired to be remitted at the State Bank’s selling
rate instead of surrendering the U.S. Dollar amount.
-
When
an Authorized Dealer desires to repatriate funds from
its ACU Dollar account with its correspondent bank in
another country (correspondent bank), it will request
that bank to effect the remittance through the ACU me
mechanism. The correspondent bank will surrender the
requisite amount of U.S. Dollar to its Central Bank
for remittance. The Central Bank receiving the amount
will advise State Bank of Pakistan to make available
the amount in U.S. Dollar to the concerned bank. The
Central Bank receiving the amount will also advise the
General Manager – ACU to credit State Bank of Pakistan’s
account by debit to its account. State Bank of Pakistan
in turn will provide the US Dollar amount to the bank
concerned in Pakistan. The State Bank may, at its option,
make the payment in Pak rupee at its buying rate.
3. Authorized
Dealers are hereby authorized to open ACU Dollar accounts
with their correspondents in the ACU member countries. Only
one account will be opened in each Country. These accounts
should be opened before 1st January, 1996.
4. The balances
in the Nostro accounts presently maintained by the Authorized
Dealers with their correspondents in ACU member countries
in the currency of the respective countries should be settled
by the 31st December, 1995 and the relative accounts
closed.
5. The limits
for maintaining Nostro balances in ACU Dollar for the banks
maintaining accounts under ACU arrangement are being fixed
and the concerned bank(s) will be apprised of it separately.
Authorized Dealers not maintaining accounts abroad under
ACU Arrangement may apply to the Deputy Director of (General),
Foreign Exchange Department, State Bank of Pakistan, Central
Directorate, Karachi for getting the limits fixed, if they
so desire.
6. The new
arrangement will come into force with effect form 1st
January, 1996 and the transactions will be routed through
ACU Dollar account.
7. Effective
1st January, 1996, the letters of credit opened
before commencement of the new mechanism in currencies of
the ACU member countries will also be settled in ACU Dollar.
The rates for conversion of the amounts of these letters
of credit from the L/C currency into ACU Dollar shall be
based on the parity between SDR and the relevant currency
and the parity between SDR and U.S. Dollar as announced
by IMF on the date two business day prior to the payment
date.
8. Please
bring the above to the notice of constituents.