State Bank of Pakistan has added Japanese Yen as the third Asian Clearing Union (ACU) currency along with USD and EURO with effect from January 01, 2020.
The ACU Yen will be equivalent to one Yen in value, SBP mentioned.
Accordingly, transactions under the 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, banks may establish ACUY accounts with their correspondents in ACU member countries and open their correspondents’ ACUY accounts with them. The transactions in ACUY will be reported by banks to SBP and settled by the State Bank separately. This also applies to the other two currencies in the union.
Accordingly, three separate accounts will be maintained for the settlement of each ACU currency (ACU Dollar, ACU Euro, and ACU Yen).
To encourage commercial banks and authorized dealers to maintain reasonable/sufficient balances in their accounts to ensure timely payments, these financial institutions are permitted to pay/receive interest, at their discretion, on these (ACUD, ACUE, and ACUY) accounts as per mutually agreed terms and conditions.
The balances of ACUD, ACUE, and ACUY accounts together with other FCY/Nostro accounts will, however, be subject to the overall exposure limits of banks and authorized dealers.