Bangladesh Bank asks banks to stop ACU transactions with Sri Lanka

Bangladesh Bank has instructed banks to refrain from transactions with Sri Lanka through the ACU system.


The central bank’s Foreign Exchange Policy Department issued a circular today and sent it to top executives of banks.


The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions.


Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka are members of ACU, which has headquarters in Tehran. The central banks of the countries have to make payments every two months.


If any Bangladeshi bank wants to settle a transaction with a Sri Lankan commercial bank, they can do it by ignoring the ACU system.


Source: United News of Bangladesh