Circulars/Notifications - Exchange Policy Department  
 FE Circular No. 07 of 2019

December 23, 2019

The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Addition of Japanese Yen (JPY) to the Asian Clearing Union (ACU) Mechanism

         Attention of the Authorized Dealers (ADs) is invited to Para 38A, Chapter 13 of the Foreign Exchange Manual and other related instructions regarding the settlement of transactions through Asian Clearing Union (ACU) Mechanism.

2.      It has been decided to include ACU Japanese Yen as the third ACU currency along with USD & EURO w.e.f. January 01, 2020. The ACU Yen would be equivalent in value to one Yen. Accordingly, transactions under ACU Mechanism, in addition to ACU Dollar (ACUD) & ACU Euro (ACUE), may also be denominated and settled in ACU Yen (ACUY) from January 01, 2020. In this regard, ADs may establish ACUY accounts with their correspondents in ACU member countries and open their correspondents’ ACUY accounts with them. The transactions in ACUY would be reported by ADs to SBP and settled by SBP separately likewise in other two ACU currencies. Accordingly, three separate accounts will be maintained for the settlement of each ACU currency (ACU Dollar, ACU Euro and ACU Yen).

3.      Further, with a view to encourage ADs to maintain reasonable / sufficient balances in their accounts to ensure timely payments, the ADs are hereby permitted to pay / receive interest, at their discretion, on these (ACUD, ACUE & ACUY) accounts as per mutually agreed terms and conditions. The balances of ACUD, ACUE & ACUY accounts together with other FCY / Nostro accounts would however be subject to the overall exposure limits of ADs.

4.      Other instructions on the subject will remain unchanged and will be equally applicable to the ACUY transactions and accounts.

5.      Please bring the above instructions to the notice of all your constituents and ensure meticulous compliance.


Yours truly,


(Arshad Mehmood Bhatti)
Director - EPD

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